Journal of Economics and Development Studies

Do Return Migrants use Remittances for Entrepreneurship in Nepal?
Jeevanath Devkota

Abstract
This study uses primary data of 275 return migrants to assess the use of remittance, probability of entrepreneurship and investment barrier in Nepal. Probit model is employed to examine the likelihood of return migrants becoming entrepreneurs and descriptive analysis is used to understand the remittance use and investment barriers. A major portion of remittance is used for land-plot purchase, daily consumption, loan repayment and housing. Of the total remittance, only 4.44 percent is used for business investment. Probit result shows that overseas saving is the most significant factor influencing entrepreneurship, followed by migrants’ qualification, returned time period, and family size. Skills learned abroad do not directly contribute to entrepreneurship. The social structure also influences entrepreneurship. Business investment is playing a positive role to use local resources and create jobs; however, power shortage, frequent strikes, unclear investment policy and an inefficient bureaucratic system are the investment barriers for return migrants.

Full Text: PDF     DOI: 10.15640/jeds.v4n2a8