Literature Review on
Remittance - Nepal

Introduction
Remittances are funds transferred from migrants to their home country. They are the private savings of workers and families that are spent in the home country for food, clothing and other expenditures, and which drive the home economy. For many developing nations, remittances from citizens working abroad provide an import source of much-needed funds. In some cases, funds from remittances exceed aide sent from the developed world, and are only exceeded by foreign direct investment (FDI).
Remittances give countries the ability to fund development their own way; however, like a teenager flush with cash from a first job, developing countries first have to understand just what it takes to effectively use remittance funds. If it is to efficiently use these funds the country must first develop policies that promote smart, stable growth, and to ensure that growth is not solely concentrated in the cities.
It is important to note that migrants do not only travel to the largest world economies for work; instead, they go where the likelihood of work is the highest. While construction-related jobs are often considered the job of choice, many workers flock to countries that are developing their economies as well. Commodity-rich countries have a high demand for labor as the prospect of rising commodity prices continues to remain a constant
Research has also shown that migrants returning from working abroad have a higher propensity for developing their own business. They have seen how businesses are run in developed countries, and are able to recognize trends within their home country and create a company to take advantage of opportunities.
The inflow of money from remittances has been compared to the windfall that countries with high-demand resources, such as oil, receive. The governments of these countries, flush with