Published: Tuesday - 14th July, 2015
The correlation study between Remittance and GDP, taking data for last 8 years, shows that the coefficient is +0.98. This means there is a strong positive relationship between the two variables. Hence, looking at the trend, we can easily infer that the more workers go abroad, the more they push the GDP up. Though this looks good from one angle but if we flip the coin and see the percentage contribution of Remittance in GDP, we see an alarming trend. The contribution of Remittance to GDP is growing by an average of 21% per year. Remittance made up 28% of Nepal’s GDP in the FY 2013/14.
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