Linkage between labor migration, remittance and self employed business activities in Nepal
This paper investigates the linkage between international labor migration, remittance and ownershipof self employed business activities in Nepal using a nationally representative cross sectional data. Thepurpose of the paper is to test the hypothesis propounded by New Economics of Labor Economics. Atwo stage instrumental variable Probit model is used to assess the relationship between the variables.The findings suggest that household with migrant members is seven percent more likely to own anenterprise while impact of remittance is negligible and insignificant. This paper concludes that theskills and knowledge about technology acquired abroad by migrant labor could be instrumental forexpanding the self employed business activities in Nepal contributing to overreaching objectives ofpoverty alleviation and creating jobs in the domestic market in the long run. Keywords: International labor migration; Remittance; Self-employment; Business activities;Entrepreneurship