Date of Award


Document Type


Degree Name

Master of Arts (MA)


Department of Sociology and Anthropology: Sociology


This research is about the impact of microfinance and remittances on the livelihood of Nepali people. The research has adopted a quantitative approach and used the Nepal Living Standard Survey 2003-04 dataset. The research shows that microfinance and remittances have a clear effect on percent of expenses made on food, health, education, and the housing quality of Nepali people. Out of four dependent variables, microfinance is significantly associated with percent of expenses on food, health and housing quality. Amount of microfinance loans received is negatively associated with percent of expenses on food and quality of housing but positively associated with the percent of expense on health. Similarly, remittances are significantly associated with two livelihood variables - food and education, but in an opposite direction. It has a negative association with food and a positive association with child education. The significant association of remittances with percent of children currently attending school shows that improvement in the financial situation of the household has a positive impact on education of children. ( ( Out of all independent variables, the total number of household jobs is the only vm1able which is significantly and negatively associated with all four dependent variables. Interestingly, household income is the weakest independent variable. It is significantly and negatively related with food only. Income has no significant relationship with health, education or housing. Income is overshadowed by other stronger factors like education level of the household head, caste and ethnicity, sex of household head, marital status of household head and number of dependent persons in the household. These variables are significantly associated with food, education and housing. It may indicate that Nepal is still a traditional country, where social factors are stronger than economic factors.


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