Remittances in times of crisis: Stability in Nepal during COVID-19

Abstract This thesis examines the role of remittances during the COVID-19 pandemic as a source of support or constraint for socioeconomic stability in Nepal. Nepal is one of the most remittance-dependent economies in the world, with remittances accounting for more than a quarter of gross domestic product. The pandemic caused an acute systemic crisis in which migration and employment came under severe pressure. Nevertheless, the inflow of remittances remained remarkably stable. Based on an exploratory case study supported by macroeconomic data from the World Bank and existing academic literature, this research analyzes four key indicators: GDP, the share of remittances in GDP, unemployment rates, and consumer spending. The findings show that remittances acted as a temporary buffer against income losses and consumption declines, especially without robust social safety nets. At the same time, they reveal structural dependencies that may limit long-term resilience. This dual dynamic...Show moreAbstract This thesis examines the role of remittances during the COVID-19 pandemic as a source of support or constraint for socioeconomic stability in Nepal. Nepal is one of the most remittance-dependent economies in the world, with remittances accounting for more than a quarter of gross domestic product. The pandemic caused an acute systemic crisis in which migration and employment came under severe pressure. Nevertheless, the inflow of remittances remained remarkably stable. Based on an exploratory case study supported by macroeconomic data from the World Bank and existing academic literature, this research analyzes four key indicators: GDP, the share of remittances in GDP, unemployment rates, and consumer spending. The findings show that remittances acted as a temporary buffer against income losses and consumption declines, especially without robust social safety nets. At the same time, they reveal structural dependencies that may limit long-term resilience. This dual dynamic between short-term stabilization and long-term vulnerability underscores the need for a nuanced approach to socioeconomic stability. The study contributes to the academic debate on migration and development and offers policy insights for remittance-dependent economies in times of crisis.Show less

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Remittances in times of crisis: Stability in Nepal during COVID-19