Impact of remittance flow on economic growth and poverty reduction in Nepal

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The research investigates the dual impact of international remittance flows on Nepal's economic growth and poverty alleviation using time-series data. It employs established econometric models to analyze both micro and macro effects, revealing a significant short-term positive correlation with growth and poverty reduction through investments in health, education, and consumption. However, over the long term, increased remittance has led to negative consequences such as the decline of the tradable sector, higher inflation, and adverse social costs, suggesting a complex relationship that warrants further examination.