Remittance and Migration: Impact on Technology Adoption, Natural Resource Conservation, and Household Welfare

Transcription

1 Louisiana State University LSU Digital Commons LSU Master's Theses Graduate School 2014 Remittance and Migration: Impact on Technology Adoption, Natural Resource Conservation, and Household Welfare Deborah Ann Williams Louisiana State University and Agricultural and Mechanical College, Follow this and additional works at: Part of the Agricultural Economics Commons Recommended Citation Williams, Deborah Ann, "Remittance and Migration: Impact on Technology Adoption, Natural Resource Conservation, and Household Welfare" (2014. LSU Master's Theses This Thesis is brought to you for free and open access by the Graduate School at LSU Digital Commons. It has been accepted for inclusion in LSU Master's Theses by an authorized graduate school editor of LSU Digital Commons. For more information, please contact

2 REMITTANCEANDMIGRATION:IMPACTONTECHNOLOGYADOPTION, NATURALRESOURCECONSERVATION,ANDHOUSEHOLDWELFARE AThesis SubmittedtotheGraduateFacultyofthe LouisianaStateUniversityand AgriculturalandMechanicalCollege inpartialfulfillmentofthe requirementsforthedegreeof MasterofScience in TheDepartmentofAgriculturalEconomics by DeborahAnnWilliams B.S.,DallasBaptistUniversity,2006 December2014

3 Firstandforemost,IdedicatethisthesistomyLordJesusChrist,forgivingmethe strengthtoseethisthesisthrough. Ialsodedicatethisthesistomyparentsfortheirlovingsupportandencouragement throughthemostdifficultoftimes. ii

4 ACKNOWLEDGEMENTS Thisthesiswouldnothavebeenpossiblewithoutthehelpofsomanypeople. HadInotmadetheacquaintanceofDr.GailCramer,HeadoftheAgriculturalEconomics DepartmentatLSU,Iwouldnothavepursuedthestudyofagriculturaleconomics.I thankhimforhisletterofsupportandencouragementduringmystudy.itwasmythesis advisor,professorkrishnapaudel,whofirstsuggestediwritemythesisonmigration andremittance.itwasbecauseofhimthaticonductedfieldresearchinnepal,which improvedmyresearchskillsandpreparedmefordoctoralstudiesandfuture developmentchallenges.ithankmyothercommitteemembers,professorashokmishra andprofessormarkschafer,fortheirsuggestionsandcommentsduringmystudy.i offermygratitudetoalltheotherfaculty,staffandfellowstudentsatlsu,specifically AbhishekBharadandBasuBhandarifortheirinput,support,andinspiration. IwasabletocollectmaterialsanddatainNepalwiththefinancialsupportofa U.S.BorlaugFellowsinFoodSecurityGraduateResearchGrant.IthankProfessorBiswo PoudelfromKathmanduUniversity,G.OrtizFerraraandDilliK.C.bothfromCIMMYT SouthAsiaRegionalOfficefortheirsupportandinvolvementinmyfieldstudy.Ithank fiveresearchassistantsandtwodataentrypersonnel,gopidawadiandanusharma, whotogetherenteredthousandsofhouseholddatainordertogenerateastratified randomsample.theresearchassistantsalsoconductedthesurveyinnepali,saroj Parajulee,RajuAryal,SantoshRasalia,MahendraBhandari,andSarmilaAryal.Anu Sharmaespeciallydeservesspecialthanksforextendingtremendouslogisticalsupport asicarriedoutmyfieldresearch.finally,myfamilydeservespraiseforsupportingme throughoutmyyearsofeducation,bothmorallyandfinancially. iii

5 PREFACE Thisthesisistheresultofacollaborativeefforttostudyandpromotesustainable foodsystems.iwroteforandwasawardedtheu.s.borlaugfellowsinglobalfood SecurityGraduateResearchGrantin2012.Undertheguidanceofmythesisadvisor, ProfessorKrishnaPaudel,Idesignedasurveytocollectbothqualitativeandquantitative data.itwasadoptedfromtwosurveys:oneconductedbytheuniversityofguadalajara andprincetonuniversityandtheotherconductedbytheuniversityofmichiganin Nepal.DuringJan[May(2013,IlivedinNepal,participatinginallaspectsoflife.I conductedinformalinterviewswiththosewhocouldspeakandunderstandenglish,and collectedmaterialonresourceuseandpropertyrights.fivenepaleseresearch assistantsinterviewedhouseholdsinnepaliandtranslatedtheresponsesintoenglish, sothedetailedactivity,incomeandexpendituredatawereobtainedfrom396 householdsoveratwo[monthperiod.undertheguidanceofprofessorpaudelandtwo others,professorbiswopoudelfromkathmanduuniversityanddr.dillik.c.,cymmit SouthAsiaRegionalOffice,econometricmodelswereusedtoexploredifferent householdlivelihoodstrategies.iwrotethemanuscriptincludedinthisthesis,anda versionofchapter3,4,and5willbesubmittedforjournalpublication. iv

6 TABLEOFCONTENTS ACKNOWLEDGEMENTS...iii PREFACE...iv LISTOFTABLES...vii LISTOFFIGURES...viii LISTOFABBREVIATIONS...ix ABSTRACT...x CHAPTER1.INTRODUCTION...1 ThesisOrganization...4 CHAPTER2.LITERATUREREVIEW...5 CHAPTER3.REMITTANCEANDTECHNOLOGYADOPTIONINAGRICULTURE...16 Introduction...16 Data...17 Methodology...20 Results...22 Conclusion...26 CHAPTER4.REMITTANCEANDCONSERVATIONTECHNOLOGYADOPTION...28 Introduction...28 Data...29 Methodology...33 Results...34 Conclusion...38 CHAPTER5.REMITTANCEANDIMPACTSONSCHOOLINGOFCHILDRENINNEPAL...40 Introduction...40 ContextandData...42 Methodology...46 Results...47 Conclusion...49 CHAPTER6.GENERALCONCLUSIONS...51 REFERENCES...54 v

7 APPENDIXA:ADDITIONALTABLE...58 APPENDIXB:SURVEY...59 VITA...82 vi

8 LISTOFTABLES Table3.1.TechnologyAdoption,descriptivestatisticsbyhousehold,Chitwan Table3.2.TechnologyAdoption,resultsofthefirstandsecondstageregressions...23 Table3.3.TechnologyAdoption,resultsofthirdstageregression...25 Table4.1.ConservationTechnology,descriptivestatisticsbyhousehold,Chitwan Table4.2.ConservationTechnology,resultsofthefirstandsecondstageregressions..35 Table4.3.ConservationTechnology,resultsofthethirdstageregression...37 Table5.1.Householdmeanbycaste,Chitwan Table5.2.DeterminantsofmigrationatthehouseholdlevelusingPoissonRegression 44 Table5.3.Education,descriptivestatisticsbyhousehold,Chitwan Table5.4.Education,resultsofthirdstageregression...48 vii

9 LISTOFFIGURES Figure1.Potentialimpactofremittanceonsustainablefoodsecurity...2 Figure2.MapofdistrictsinNepal...3 viii

10 LISTOFABBREVIATIONS 2SLS two[stageleastsquares 3SLS three[stageleastsquares CA conservationagriculture CYMMYT InternationalMaizeandWheatImprovementCenter FAO FoodandAgricultureOrganizationoftheUnitedNations GDP grossdomesticproduct GON GovernmentofNepal NARC NepalAgriculturalResearchCouncil NARI NationalAgriculturalResearchInstitute NELM neweconomicsoflabormigration NGO non[governmentalorganization USAID UnitedStatesAgencyforInternationalDevelopment VDC VillageDevelopmentCommittee ix

11 ABSTRACT Nepalistheperfectcountrytostudyallthefacetsofmigration,sustainable agricultureandtheirsubsequentimpactonfoodsystems.drovesofmigrantsare leavingruralnepalforhigherincomestocoverhouseholddailyexpenses.the GovernmentofNepal(GONencouragesmigrationasameanstoreducepoverty,and remittancealreadyamountsto25.83%ofgdp,anditisexpectedtogrow(nepalbastra Bank2014,ThiemeandWyss2005,Yang2011.However,itisstillunclearwhetherthe massexodusfromruralareasandthegrowingdependenceonremittance,theportion ofthemigrantworkers'earningssentbacktothemigrant sfamily,willexacerbate foodinsecurityinthelongrun.formigrationandremittancetofostersustainable development,thisnon[laborincomehastoeventuallybechanneledtowardproductive investments. Themostobvioususeofremittanceincomethatcouldfostereconomicgrowth inruralnepalistofinanceinputsthatincreaseagriculturalproductivity.agricultural developmenthasbeenthecruxofmanynationalandinternationaldevelopment proposals;itisconsideredthemainobjectiveinu.s.governmentinitiativessuchas FeedtheFuturebyUSAID(NepalFY.However,increasingeconomicgrowththrough agriculturaldevelopmentshouldbeweightedbythepotentialenvironmental degradation(frostetal.2007.otherwise,increasingagriculturalproductivitymay exacerbatefoodinsecurityproblems(mgbenkaetal.2012.theimpactofmigration andremittanceonagriculturalproductivityandnaturalresourceconservationmay alsobeacceleratedbythesimultaneousinvestmentineducation. Thisstudyseparatestheimpactofmigrationandremittanceonseveral householdinvestmentdecisionsusingthreestageleastsquares(3slsonnewdata collectedfromrepresentativehouseholdsineasternchitwan(feb[mar2013.testing whethermigrationandremittanceasanoverallpositiveeffectontechnologyadoption, naturalresourceconservation,andhousehold sperchildexpenditureoneducation enhancesourunderstandingofhownepalesehouseholds decision[makingprocess,and theiruseofremittanceincome,impactsustainablepovertyalleviationandfood security.whileseveralstudiesoninternationalanddomesticmigrationhavebeen carriedoutinnepal,todate,therehasbeenlittlepublishedonitsimpactonsustainable foodsystemsinthechitwanvalley. x

12 CHAPTER1 INTRODUCTION PovertyalleviationprogramshavelongconsideredthediversityofpathwaystoNepal s economicdevelopment,butnepal seconomyisstillhighlyagrarian;agricultureaccountsfor 33%ofGDPandprovidesthelivelihoodfor75%ofthepopulation(NepalMinistryofFinance 2014,ThiemeandWyss2005,Maharjanetal.2012.Aquarterofitspeopleliveonlessthan US$1aday,andNepalisafoodimportcountry,unabletoproduceenoughfoodtomeetthe needsforthewholeyear;consequently,nepal ssuccessfuleconomicdevelopmenthingeson increasedagriculturalproductivity(wagle2010,nepalfy.nepal sterai,orfertilelowlands, possessthemostpromisingmeansofattainingself[sufficientagriculturalproduction,and improvingtheagriculturalproductivityinchitwan,oneofitsmostagriculturallydeveloped districts,maybethequickestwaytoachievingequilibriumintheforeignexchangeoffood.the long%termproductivecapacityofthevalleyisindispensibletothefutureofthenation,and whileimprovingthesustainablelivelihoodsofsmallandmarginalfarmersintheareais imperative,landholdingscontinuetobefragmentedandagriculturallandsinfringedupon a majorchallenge,whichsurprisinglyreceiveslittlepolicyattention. Chitwan ssuccessfulagriculturaldevelopmentbecomesinherentlymorecomplexwhen growingnumbersoffarminghouseholdsareparticipatingininternal(fromruraltourbanor internationalmigration(williams2009;nepal snationalpopulationandhousingcensus, 2011,Masseyetal.2010.Countriesthathavetransitionedfromagriculturalbasedeconomies, throughintensificationordiversification,haverealizedeconomicdevelopmentand modernizationinthepast,butnepal sagriculturalsector,includingitsmostagriculturally developeddistricts,arestillunderdeveloped(frostetal.2007;rozelleetal.2009,maharjanet al.2012.thesocial,institutional,andenvironmentalfeaturesofthenepalesecontextrequires thatdevelopmentinitiativesbeformulatedinaccordancewithitsreality themostalarming beingthatmigrationisleadingtoincreasedoff[farmemploymentinanalreadyfoodinsecure country;officialshaveestimatedthattwomillionworkingageadultshaveleftthecountry,and thebulkofithasoccurredinthelastdecade(unitednationspopulationdivision,2011;lokshin etal.2010.studieshavealsoshownthattheonlythingsustainingitstepideconomyistheir remittances,theportionofthemigrantworkers'earningssentbacktothemigrant sfamilyin cashorinkind,whichalreadyamountsto25.83%ofgdp,anditisexpectedtogrow(nepal BastraBank2014,ThiemeandWyss2005,Wagle2010,Yang2010. Theremittancesmaybeflowinginresponsetothecountry smacro[economic performance,frequentnaturaldisasters,orrecurringpoliticalconflict,whichmaybehelpingits ruralhouseholdsdiversifyincomesourcesandsmoothconsumptionlevelsinresponseto shocks whenhouseholdsfacerepeatedcropfailures,forexample,theymayhavestrong extendedfamilysystemsthatcanensurecontinuousremittancesinordertoprevent deprivation(quinn2009,rathaandsilwal2012.otherstudiessuggestthatinadditionto improvingthefarminghouseholds financialmeans,migrationmayalsobeexpandingthe family sskillbaseandsocialnetworks, fundamentallyinfluencingthesocio[economic developmentofthemigrant,household,andeventuallythecommunityandnation.while manyagreethattheinstitutionhasthepotentialtoincreasefoodsecurity,alleviatepoverty, 83

13 andpromotedevelopment,especiallyfortheruralpoorwhoareisolated,under[educatedand lackthemeanstowingreateraccesstolocalresources,manyotherswarnthatremittance receiptsmaynotsustainably0alleviatepovertyandimprovefoodsecurityinthelongrun;it couldactuallybeleadingtoagrowingdependenceonannon[laborincome,withverylittleofit beingchanneledtowardeconomicdevelopment(thiemeandwyss2005,wagle2010,carletto etal.2011,lez[vegaetal.2004,frostetal.2007,yang2011,adamsandpage2005,rathaand Silwal2012,GrigorianandMelkonyan2011. MIGRATION REMITTANCE Agricultural Technology Conservation Agriculture HumanCapital FoodSecurity Figure1.Potentialimpactofmigrationandremittanceonsustainablefoodsecurity. Whilepreviousresearchsuggeststhatremittanceshavehelpedasignificantnumberof householdsinthedevelopingworldcopewithvulnerabilitiestoshock,soledependenceon remittanceshasalsoproducedmoralhazards,ordisincentivestowork(grigorianand Melkonyan2011.Previousstudieshaveadditionallyshownthatthesuddendeathofa migrant,theirpropensitytoremitlesseramountsovertime,andnegativeshockstoexchange ratesmayallleadtodeleteriouslyconsequencesfortherecipienthousehold;furthermore, remittancereceiptsarenotalwayspredictable,andhouseholdsmayfinditdifficulttomanage themoney,allindicatingthesehouseholdscontinued0exposureand0vulnerabilitytoriskand uncertainty(thiemeandwyss2005,yang2011,frostetal.2007,grigorianandmelkonyan 2011.Considerableresearchisstillrequiredtofullyunderstandthelong[runimplicationsof migrationandremittancesforthissmall,landlockedcountry;andwhiletheirexpenditureon consumptionmaybeimportant theyarestartingatverylowconsumptionlevels their successful0livelihoodoutcomeisrelatedtoimproved0resiliencetofoodinsecurity,whichis fundamentallyrelatedtoagriculturalproductivity,thesustainableuseofnaturalresourcesand educationlevelsinnepal(nepalfy. 2

14 Amultifacetedproblem,suchasthis,requiresbringingtogethermultiplestakeholders fromngos,researchinstitutions,andextensionworkers;thisthesishopestomakea contributionbyhelpingformulatethepathwaystosustainablefoodsystems,andinorderto takeintoconsiderationthenepalesecontextandendogenouslyderivethesepathways,a researcherlivedinnepalduringjan[may(2013.byparticipatinginallaspectsoflifeandliving throughanagriculturalseason,itconfirmedthatnepalesedesirelivelihoods,andadopt strategiesthataredeeplyinfluencedbythecontextinwhichtheylive.theseinformal interviewsclarifiedawiderangeofsocialandeconomicfeaturesofthesociety,suchas resourceuseandpropertyrights.additionally,nepaleseresearchassistantsobtainedthe detailedactivity,incomeandexpendituredatafor396householdsoveratwo[monthperiodin ordertoascertainthelinkbetweenfoodsystemsandmigrationfromtheeasternchitwan Valley.BytacklingthisprobleminChitwan,locatedinsouth[centralNepal,wehopedto contributetothesustainablefoodsecurityofnumeroushouseholdsinthevalley,butultimately determinetrendsandmakepolicysuggestionsthatcouldhelpsubsidizethecrippledfarming systemsinothermorevulnerableareasofthecountry,likethewesterndevelopmentregion. Figure2.MapofdistrictsinNepal SourceNepalnews.com Studiesonfactorsinfluencingadoptionofagriculturaltechnology,naturalresource conservation,andchildren seducationhavebeenconductedbefore,buttodate,therehas beenlittlepublishedontheimpactofmigrationandremittanceontheseinvestmentsinthe Terai understandably,foodinsecurityisovertlyconcentratedinthehillyareas,butthe investmentintheabovestatedoutcomesareinherentlylinkedtothecountry ssustainable agriculturaldevelopment(nepalfy.additionally,wepresentempiricalevidenceusingprimary datafromaregionoftheteraithathasnotbeenpreviouslystudied themagnitudeand 3

15 intensityoffactorsleadingtoinvestmentshavevariedfromoneplacetoanotherbasedonthe agro[ecological,socio[economicandinstitutionalsettings.weprofferthatmigrationand remittancehavebothpositiveandnegativeeffectsineasternchitwan,andifregulationsand policiesarenotcoupledwithrecentevidence,migrantremittancesmaybeusedmainlyfor consumption,withverylittlebeingusedforsustainableinvestmentorworse,may contributetothedegradationofanalreadyvulnerableenvironmentand/orfurther marginalizelowerlcasteandethnicgroupsinthecountry(maphosa2007,lezlvegaetal ThesisOrganization Thethesisispresentedtoallowreadersatdifferentlevelstoquicklylocateareasof interest,anditisorganizedintosixparts.followingtheintroduction,theliteraturereview relatedtothethreeessaysinthisthesiswillbepresented.theneweconomicsoflabor migration(nelmhasvariousapplicationsconnectedtoagriculturaldevelopmentandabroad overviewofpreviousliteraturerelatedtothenepalesecontextisreviewed.therearejournal stylemanuscriptsontechnologyadoption,naturalresourceconservation,andchildren s education,presentedinchapter3,chapter4,chapter5,respectively.eachmanuscriptincludes anintroduction,dataandmethodologysection,whichdiscusspreviouswork,economictheory, model,variablesandtheestimationprocedureused.theresultssectiondiscussestheimpactof migrationandremittanceontheparticularvariableofinterest.thelasttwosectionsofeach manuscriptsummarizetheresultsandconcludewithlimitationsandsuggestions.chapter6 presentsageneraloverviewoftheresultsandconclusionofthemigrationandremittance studyinnepal. 4

16 CHAPTER2 LITERATUREREVIEW Thetheoreticalframeworkforthisstudyistheneweconomicsoflabormigration (NELM,whichsuggeststhatmigranthouseholds,householdswithatleastonememberwho hasleftforwork,representaninstitutioninfluencedbyriskanduncertainty(rozelleetal.1999 citingstark1991andtayloretal.1999.forexample,mostruralhouseholdsindeveloping countries,likenepal,arefarminghouseholds;theycanrepresentalargepercentageofa developingcountry stotalpopulation,whichmeansmanyofthemarefullyemployedin livelihoodactivitiesthroughouttheyear,undertakingsubsistenceagriculture,cultivating everybitoflandtosupporttheirfamily(mccallaetal.2010,rozelleetal.2009,mendola 2007,Maharjanetal.2012.However, adverseweatherconditionsandstructural limitationssuchassmalllandholdings,lackofbasicinfrastructure,andmechanization, constrainproductivityandhinderthecommercializationofproducts (Maharjanetal Becauseruralhouseholdshavelesssecureaccesstoincome,creditandtime constraints,sothatanynewendeavorhastocompetewithestablishedlivelihoodactivities, theyareoftenunabletowithstand,adapt,orreacttoshocks,associatingruralagriculturewith poverty(lez[vegaetal.2004,mendola2007,frostetal Furthermore,thecountry spoliticalinstabilityandcorruptionmayimpedethebuilding ofmuch[neededinfrastructure,whichmeansanindeterminateamountoftimeassociatedwith pooraccesstocredit,insurancemarkets,andgovernmentservices,suchashealthclinics, education,roads,andareliableelectricitygrid.domesticlabormarketsareusuallycrippled theremaybeseveralcontractualandoppressiveinstitutionsregulatingitoritmaystillbe largelydependentontheagriculturalsector wherelaborparticipationvarieswiththetime periodoftheyear(lez[vegaetal.2004,thiemeandwyss2005,mendola2007,rozelleet.al 2009,Wagle2010,Masseyetal.2010.Ultimately,underdevelopedcountriesfailtoprovide resourcesorincentivesfortheirpoor,unemployedand/orunderutilizedpeopletoremainin theircommunitiesoforigin,andasthepopulationcontinuestoincreaseandtheshortageof employmentopportunitiespersist,peoplemayadoptout[migrationinordertocopewithrisk anduncertainty(grigorianandmelkonyan2010,frostetal.2007,firdausandahmad2010, Wagle2010.Currently,thereareoverthreepercentoftheworldpopulationlivingoutside theircountryofbirthandmanymorethathavemovedoutofruralareas(unitednations PopulationDivision,2013. FarminghouseholdsinthewesternregionofNepal,forexample,arelocatedinthe largerdominanteconomicandpoliticalsystemcenteredinthecapital,buttheytypicallyhave toworkwithimperfectdevelopingmarketsforinput,product,credit,andinsurance,which functionsporadicallyiftheyexistatall(wagle2010,maharjanetal.2012,mendola2007. Therearesocialandculturalcomplexitiesthatcontrolmanyaspectsoftheirlivesin additiontosevereconstraintstheyfacethatstemfrommarginalconditionsformostforms ofagriculture(thiemeandwyss2005,mendola2007.forexample,politicalinstability andtheensuingviolencehasbecomeapervasivefeatureoftheirenvironment,andland erosion,flooding,deforestationandothernaturalcalamitiesfurtherexacerbatethesituation (AgrawalandGupta2005,Masseyetal.2010,Maharjanetal.2012.Aspreviousstudieshave suggested, householdsthatdependprimarilyonagriculture,eitherbecausetheyfarmor 5

17 6 becausewagesonotherpeople sfarmscomprisealargepartoftheirincome,tendtobemired inpoverty (Lez[Vegaetal Fortunately,Nepal smacroeconomicfunctioningcouldaffect itsruralhouseholds productionbehavior,butpoliticalinstabilityhasresultedinmanypeople leavingtheareabeforesubstantialimprovementscanbemade(thiemeandwyss2005, Lokshinetal.2010 ManyNepalesearedeprivedofthechoiceandpotentialsuccessofalivelihoodstrategy intheircommunitiesofbirth,andresearchmaysupportseveraleconomicreasonsthathelp explainwhyonewouldmigratetoanewareaincludingaltruism,environmentaldegradation, discrimination,corruption,illiteracy,credit,loanrepayment,andinvestment(thiemeandwyss 2005,Quinn2009,StarkandLucas1988,Masseyetal.2010,Yang2011,Carlettoetal.2011, Laiaetal.2012.Thereisarigorousefforttoquantifytherelativeimportanceofdifferent motivationstomigrate,butmassey(etal.2010explainsthatthe criticaldeterminantsof migrationfallintothreebasiccategories:humancapital,socialcapital,andphysicalcapital. Theproblemisthatstudiesonmotivationhaveatendencytofocusononlyonedimensionof migrationinisolationfromallothers(masseyetal.2010,rozelleetal.1999.asthenelm stressestheinterrelationshipbetweenthemotivationtomigrateandtheimpactofmigration,it isimperativethattheresearchcommunityalsomakecleartheuncertaintiesconcerningsome ofthebenefitsandpitfallsofmigrationforruraleconomies;insomecases,itismoreimportant tosidestepthequestionofmotivationanddelveintotheramificationsforfamilyoperations whenhouseholdsexperiencethelossoflabor(rozelleetal Onesuchconsequenceofout[migration,amaledominatedinstitution,isthe feminizationoflabor (Maharjanetal.2012.Whenmenmigrateforwork,womenmusttake onalargershareofhouseholdandagriculturalresponsibilities(laiaetal.2012,thiemeand Wyss2005.Traditionally,malesperformedheavyfarmingtaskswhilefemalesdidlighter agriculturalwork,buttraditionalrulesarenolongerstrictlyobservedresultinginunclear genderedactivities(maharjanetal.2012.thegrowingavailabilityoffemalelabororfemale[ headedhouseholds,duetoout[migration,doeslittletopreventhouseholdsfromfacinglabor shortagesduringpeakagriculturalseasons,especiallyifcropproductionislaborintensive. Significantlost[laboreffectsinhibittheintensificationanddiversificationofagricultural production,thefundamentalinstrumentforreducingfoodinsecurityinmanypoverty alleviationprograms.outlmigrationalsohasthepotentialtocreatemoralhazards(nepal FY,Frostetal.2007,Rozelleetal.2009,Maharjanetal.2012,GrigorianandMelkonyan2011. Oftenoverlookedarethelossofproductivelaborforthehomecountryaswellasthepotential disincentivestowork,study,andstayinthehomecountryforthefamilymembersleftbehind (GrigorianandMelkonyan2011. Anotherexampleofalost[laboreffectisfoodinsecurity.TheWesternDevelopment Region,themostimpoverishedareaofNepal,forexample,islinkedtothenationaleconomy throughpricesofagriculturalinputs,buttheregioncontinuestoreceiveminimalgovernment[ providedinfrastructure,suchasall[weatherroads,publicirrigation,andsafedrinkingwater, whichiscreatingdisparitiesamongregionsandweakeningtheincentivesforhouseholdsto stayinthearea(masseyetal.2010,wagle2010.aslargersharesoffarminghouseholds participateininternalandinternationalmigration,themostvulnerableregionofnepal continuallyexperiencesnegativegrowthinagriculture,partiallyexplainedbyout[migration (Wagle2010,Maharjanetal.2012,Lokshinetal.2010,ThiemeandWyss2005.Formidably,

18 therestillremainalargepercentageofruralhouseholdsthatstilldependonagriculturewith mostofthemunabletoproduceenoughfoodtomeetthedailyminimumcalorie requirements foodinsecurityinthewesterndevelopmentregionhasbecomeanimportant focusareainu.s.governmentinitiativessuchasfeedthefuturebyusaid(thiemeandwyss 2005,Wagle2010,NepalFY. Ontheotherhand,migranthouseholdsareverylikelyreceivingamajorinjectionof cash;theamountofremittancesdependsonthestatusofthemigrant(legalorillegal,salary, livingcosts,andthemakeupofthemigrantfamily(thiemeandwyss2005.officialsestimate that375billionnominaldollarsflowedtothedevelopingworldin2011,andmadeupto 31%ofacountry sgdp,makingremittancesthemostimportantsourceofprivatecapital flowstomorethanadozencountries,includingnepal(rathaandsilwal2012.ithasexceeded officialdevelopmentassistanceandportfolioinvestmentsincethe1990s,anditnow approachesforeigndirectinvestments(yang2011.unlikeotherformsofaid,remittance[ recipientsusuallydonothaveanobligationtorepay,and atthehousehold[level,these remittancesarelikelytohaveimportantincomeeffects,aswellaspossiblyrelaxbinding liquidity,credit,orinsuranceconstraints (Carlettoetal.2011.Theextraincomecanbeused forseveralpurposes:itcanfacilitateinvestment,forexample,startingnewmicro[enterprisesor iftheroleofpublicpoliciesandlabormarketsarenegligible,theextraincomeaffordsrural householdsthemeansofsecuringdailyfoodrequirementsandescapingpoverty(mendola 2007,Yang2011,Frostetal.2007,Carlettoetal.2011,ThiemeandWyss2005. Theliteratureisnowinundatedwiththemigrationandremittanceeffectsonoutcomes suchaspoverty,inequality,health,education,investment,savings,laborsupply,labor participation,andeconomicgrowth.however,theliteraturesuggestsmixedresults.some studiesfindthatmigrationandremittancehaveapositiveeffect(quinn2009,adamsandpage 2005,Lokshinetal.2010,Carlettoetal.2011,otherssuggestnoorlimitedeffect(Bansakand Chezum2009,Lez[Vegaetal.2004,andsomefindanegativerelationship(Rozelleetal.1999, Wagle2010,GrigorianandMelkonyan2011,Adeolaetal.2011,Maharjanetal While moststudiesfindthatremittancesboostconsumption,resultsvaryastohowmuchofthe remittanceflowsgetsiphonedawayformoreproductiveuses (GrigorianandMelkonyan 2011.Formigrationandremittancetofostersustainabledevelopmentithastoeventuallybe channeledtoinvestments,andthemostobvioususeofremittanceincomethatcouldfoster economicgrowthinafoodinsecurecountrylikenepalistofinanceinputsthatincrease agriculturalproductivity.however,anobstacletogaininginsightintohousehold consumptionandinvestmentbehaviorinnepalisdataquality officialfiguresarestill unabletocapturethescaleofmigrationtakingplacewithinandaroundthecountry(thieme andwyss2005. Onechallengethatanalystsmayfaceistheoperationaldefinitionsofmigration migrantsmaybedelineatedinseveraldifferentways,bytimespentaway,destinationchosen, orlinkstothehouseholdremainingbehind,italldependsonthesurvey(carlettoetal.2010, Yang2010.Migrantsmayalsoobtainpermanentortemporaryjobs seasonal,circular,and commuting butresearchershavealsodefinedtemporarymigrationinvariousways(yang 2011.Wefoundthatindividualscommutingfromruralareastoparticipateinthelocalwage market,forexample,werenotreallyengagedin local employment somewards,or neighborhoodsinnepal,aresoisolatedbydistance,badroads,orweather(monsoonseason, 7

19 8 thatlocalwageearnersmightaswellbelabeledpermanentmigrantsbecausetheyrarely visitedthehomestead.tofurthercomplicatemigrationanalysis,internalmigrationis institutionalized orsocommoninthiscountrythatsomehouseholdsdonotconsiderthose whoparticipateinitamigrantorthemoneytheysendbackremittances(thiemeandwyss 2005.Remittanceindicatorsmayalsobesubjecttomeasurementerror somehouseholds mayunderstatetheirtrueincomeorfeeluncomfortablerevealingtheamountofremittances theyreceive(grigorianandmelkonyan2011. Moreover,amigrationmodulemaynotfullycapturethespatialdimensionsofmigrant households,takingintoconsiderationthesocialtiesandspecificculturalidentitiesoftheir communities,soamigrant0household0maybedefinedinseveralways(carlettoetal.2010, GrigorianandMelkonyan2011.Forexample,wefoundthatourstratifiedrandomsampleof landownerswasunabletocapturethenetworkofrelationshipsbetweenhouseholdsthat sharedcommonpoolresources householdsthathavecloserelativesabuttheirproperty.the extendedfamilysystemsmaybeleadingtomulti[householdconsumptionandinvestment decisions,therebymakingthestudyofsingle[familyhouseholdsadministrativelysimplebut inappropriateforthenepalesecontext.itwasalsoobservedduringfieldstudythattheheadof householdsdidnotconsidermarrieddaughterschildren somedidnotvolunteerinformation abouttheserelationships.theassociationwithamigrant,especiallyofchildren,greatly increasestheoddsofout[migrationduetoincreasedinformationflow,assistancewith employmentopportunitiesandhelpwithaccommodations thenumberhasalsobeenusedas aninstrumenttoidentifyamigrationequation(thiemeandwyss2005,wagle2010,masseyet al Anotherchallengefacingtheresearchcommunityisinterpretingmigrationpatternsin lightofnepal sethnicallydiverseandcomplexsociety accurateinterpretationofasocio[ demographicvariable,suchascaste,isacrucialtoolinthefightagainstpoverty researchers havesuggesteditpartiallyexplainsthechoiceoflivelihoodstrategy.however,inorderto simplifytheanalysis,researchershaveoftensub[dividedthe100differentcastesandethnic groupsintofivetosevencategories(williams2009,wagle2010,masseyetal We suspectthatthesubdivisionisanover[simplificationofreality;especiallyafternepaliresearch assistantsoperationallydefinedonlytwocastesas high. Oneexplanationisthatlower[caste householdshistoricallyhavehadbetteraccesstolandholdingsinthehimalayanfoothillsand ridges,whilehigher[castehouseholds,withmorechoiceandflexibilitytomigrate,hadtheir landholdingsinthefertilelowlands,whichislocatedinthesouthernbeltofthecountry (Maharjanetal.2012.Howeachcasteranksmaybehighlycontextualizedbecauseoflimited internalmobilityinthepast,soconductingastudyinonedistrictmaynotbecomparableto studiesinaneighboringdistrict,ifcomposedofpeoplewithdifferentethnicbackgrounds (Masseyetal Despitethechallenges,aseriousevaluationofthemigrationandremittanceeffectson sustainablefoodsystemsinnepalisrequired;alargepercentageofruralhouseholdsstill dependonagricultural,withtoomanyofthemunabletoproduceenoughfoodtomeetthe needsforthewholeyear,soonepovertyalleviationstrategythathasbeenadvocatedisfor householdstofindemploymentintheterai avoidingthelowreturnstoagricultureinthehills andmountains(thiemeandwyss2005,wagle2010,nepalfy.thisapproachisoften connectedtointernationalmigration,asthelattermaybetheonlywaytofinanceinternal

20 migrationtothelowlands NepalesehavealonghistoryofseekingemploymentinIndia,andit remainsthedestinationformostofthesemigranthouseholds,butotherdestinationsarealso chosen. 1 Still,householdswithmorechoiceandflexibilityarebetterabletotakeadvantageof thehigherwageratesinthevalley,andwhenanimportantincome[earningopportunityis partiallyexplainedbysocio[demographicvariables,theremaybegraveimplicationsfor householdsleftbehind,whichhaspreviouslybeenalludedto.additionally,itmayhavea significantimpactonthefertilelowlandsreceivingthemigrants(thiemeandwyss2005, Maharjanetal.2012,Wagle2010,Masseyetal TheTerai,animpenetrableandsavagejungleattheturnofthe20 th century,was originallyopenedupforsettlementthroughextensivedeforestationefforts thegovernment ofnepal s(gonpopulationdistributionpolicytoovercomefoodshortagesinthehillyareas. TheTeraiisnowthebreadbasketofNepal,andunlikethehills,whichcanexperiencegradients ofover30degrees,thesoilisrichandflat,conducivetogrowingspecialtycropslikemustard andtraditionalcropslikerice,wheatandmaize.however,mostoftheagriculturalproduction isstillcharacterizedbysmallfarmsizesandlowlevelsofagriculturalproductivity returnson thecultivationofcerealcropsarecomparativelylow,andmosthouseholdsstilldependon themforsurvival.agrowingnumberoffamiliesarealsousingfisheriesandlivestock production,suchaspoultryanddairyfarming,toearncash.usuallyashareoftotalfarm productiongoestopersonalconsumption,andsurpluscropsaresoldtocooperativesor distributorswithinornearthelocalmarkets. 2 Whilelandisthelinktothemostfundamental economicactivityforthemajorityofthepopulation,householdsstilllackthelevelof productionrequiredtomeetnepal sfoodneedsforthewholeyear(masseyetal.2010, Mendola2007,Maharjanetal However,Chitwan,locatedinsouth[centralNepal,isoneofthemostagriculturally developeddistrictsintheterai withthecapacitytocontributealargershareofproduction andleadthecountrytoself[sufficiency.ifcarriedoutappropriately,improvedagricultural productivityinthisvalleycouldaugmentfarmincome,generateemployment,ensurefood security,reducepoverty,andoverall,promoteeconomicdevelopmentfortheentirenation (FirdausandAhmad2010.Yet,withtheproliferationofinvestmentsinnotonlyagriculture, butalsogovernmentservices,businessesandcommercialenterprises,economicopportunities outsideoffarminghavebeenimprovingforanumberofhouseholds.thedistricthasalready becomethehubfortheentirecountry apavedroadconnectsthevalleytothecapitalandthe restofthenation thereareplanstoexpandtheairportandtherewerediscussionsabout movingthecapitalcitytochitwan,furtherconnectingrurallivelihoodstourbanmarkets.on onehand,theexcessiveurbanizationmeansgrowingnumbersofhouseholdsareearning rental,employment,andbusinessincomes,butontheother,landisquicklybeingdiverted fromagricultureproductiontorealestate,commercialbuildingsandotherphysical structures(masseyetal TherehasbeenanofficialopenborderbetweenNepalandIndiawiththesigningofthe1950TreatyofPeaceand Friendship(ThiemeandWyss BecausemostofNepal sagriculturalproduceiswastedduetopoorstorageandprocessing,thequestionof storage,processing,andtransportingsurpluscropstomorevulnerableareasisstillapolicyconcernandshouldbe simultaneouslyaddressed;however,itisbeyondthescopeofthisthesis(nepalfy. 9

21 Thecapacityoffarmingtoprovidethesolemeansofsurvivalisdiminishingfast the valleyisfacingsevereconstraintsonagriculturalresources;forexample,thedeclineinper capitaavailabilityofagriculturallandisresultinginalarminglyhighlandprices. Additionally,manypeoplestilllacktheappropriateeducationandsocialcapitaltoaccessgood localjobs withalreadylimitednumbersofemploymentopportunities,duetopolitical instabilityandacrippledlabormarket,agrowingnumberofruralhouseholdsare participatinginoutlmigration(maharjanetal.2012,thiemeandwyss.2005,masseyatal. 2010,Williams2009.Themassexodusfromthemostagriculturallydevelopeddistrictin Nepal,resultingintheoutflowofresources,maynotamelioratethepressurebutexacerbate thegrowingdemandforfoodandintensifytheforeignexchangedisequilibriumarisingfrom foodimports(rozelleetal.2009,kolawoleetal.2012.theneoclassicalmodeloflaborsupply suggeststhatremittance,anon[laborincome,maydecreasehoursdevoted0to0farming,sothere maybesignificantlost[laboreffectsinchitwan thelocalfarmingsystemstillprovidesthe mostimportantsourceofeconomicactivityforthevalley,andthemigrantswhoareleavingfor urbancenters,likekathmandu,andinternationaldestinations,likeeuropeandtheunited States,maybethemostskilledoreducated(Williams2009. Ontheotherhand,thepotentialeffectofmigrationonproductionconstraintsisnot alwaysnegative migrationcouldactasinsurancetomitigateriskassociatedwithcommodity production(migrantsendsremittanceincasethecropfails,whichmeansthenumberof migrantsmaybepositivelyassociatedwiththeadoptionofagriculturaltechnology(quinn 2009.Previousstudieshavealsofoundthatamajorconstrainttopurchasingagricultural technology,suchasimprovedseed,fertilizer,pesticides,farmimplementsandfarmmachinery, isthelackofcredit(frostetal.2007,akteruzzmanetal.2008,alametal.2008,firdausand Ahmad2010,Maharjanetal.2010,Mgbenkaetal.2012,OkaforandFabiyi2011,Quinn2009. Migrantremittancescouldplayasignificantroleinfinancingtheseproductivity[enhancing technologies.previousstudieshavealsofoundthatthelossoflaborisnegligibleifthevast majorityofmigrantswerenotveryactiveinagriculturebeforetheirmigration(rozelleetal. 2009,ThiemeandWyss2005.Sowhilemigrationmayhaveapositiveornegativeeffect,and thesizeableflowofremittancescouldencourageimportsanddiscourageexportsofagricultural commodities,theoverallimpactofmigrationandremittancesonadoptionofagricultural technologyremainsunstudiedinthisarea(lez[vegaetal Furthermore,therearesocial,institutional,andenvironmentalfeaturesofthe Nepalesecontextthatshouldalsobeconsideredinthispovertyalleviationscheme unregulatedmigrationmighthavedeleteriousconsequencesonthelong%term*productive capacityofthecountry.first,considerthatnepalhasoneofthehighestginiindexesinasia, andmanyresearchersbelieveitispartiallyexplainedbythehierarchalcastesystem caste[ baseddiscriminationislegallybannedinnepal,buttheteraiisalreadyhighlysegregatedin termsofaccessandpossessionoflocalresources,likeland(agrawalandgupta2005,wagle 2010,Maharjanetal.2012.Onceacquiringlandholdingsinthevalley,highercastefamiliesdid notsellunlesstheywereinadiresituation,andbecausenepalifamilytieswerestrong,they sub[dividedagriculturallandsonaninheritancebasis historically,highercastefamilies possessalargershareoflandholdingsinnepal(wagle2010,maharjanetal Additionally, lower[castepeoplegenerallyhavesmallerlandholdings iftheyhaveland holdingsatall(maharjanetal.2012.becausetheassociationbetweenlandholdingsand 10

22 economicandsocialstatusexist,inequalitymayinadvertentlybeimpactingtheagricultural system(thiemeandwyss2005,wagle2010,maharjanetal Considertheconcentrationoflandholdings familieswithlargerpropertiestoactas collateral,havebetteraccesstoinstitutionalcredit,whichmayputtheminabetterpositionto financeevenmorelandpurchases(maharjanetal.2012,firdausandahmad2010,ebojeietal Theassimilationofsmallfarmsbylargerlandholdersmayincreasetheiroverallincome byintroducingmechanizationandcommercialization,butitmayfurthermarginalizesmall farmerswhochoosenottosell bylackingbargainingpower,forexample,smalllandholders mayberequiredtopayhigherpricesforagriculturalinputs(firdausandahmad2010. Additionally,studieshavefoundthattheconcentrationoflandthroughpurchaseandleasing mayresultinhouseholdsowningagriculturallandbutnotnecessarilyhavingtheirhomesteads inthatcommunity itwasobservedduringfieldstudythatfamiliesasfarawayasthecapital cityownedagriculturallandinchitwan. 3 Havingagriculturallandscatteredindifferentlocations and/orastakeholdernotlivinginthecommunityhaveconstrainedlarge[scaleproductionor ledtosub[optimalinvestmentdecisions,inputapplications,ordecisionsregardingcultivation practicesinothercountries(firdausandahmad2010,laiaetal Additionally,manyincome[generatingsourcesarealsoindirectlydeterminedbysizeof landholdings,whichinturnfurtherestablisheseconomicstatus(firdausandahmad2010, Wagle2010. Itstartswiththepossessionofland economicpower,withoutwhichitisdifficult tosecureagoodeducation,nonagriculturaljob,orsendoffspringabroadduetocredit constraints(lez[vegaetal.2004,lokshinetal.2010.whilethehinducastesystemreserves themorewell[paidandrespectablejobsforhighercastepeople,themarginalizedandlower castehouseholdshavegenerallyfairedwithsmallerlandholdings,lowerlevelsofeducationand lessincome(thiemeandwyss2005,wagle2010.notallhouseholdsinnepalareableto affordtherelatedexpensesofmigration,especiallytointernationaldestinations,whichmeans householdswithmorelandareinabetterpositiontoreceivemoreremittances further drivingthedifferentiationbetweenwealthgroupsandfurtherperpetuatingcaste[based discrimination(laiaetal.2012,thiemeandwyss2005,masseyetal.2010,wagle2010. The largestincreaseintheincidenceofbothdomesticandinternationalremittancesisregistered amonghouseholdswithtwoandmorehectaresofland (Lokshinetal Moreover,thedifferentialaccesstoland,education,goodemployment,andmigration maynotonlybeperpetuatingthecaste[baseddiscriminationbutsimultaneouslyeffectingthe agriculturalsystem thereareinherentdisadvantagesfacinglower[casteandethnicgroupsin theiraccesstocertainresourcesandlivelihoodstrategies,andwhilemanyinequality[reducing initiativesareunderway,discriminationisstilldeeprootedinsocietywithmanyinitiatives beingthwarted.forexample,moreprivilegedfamiliesareabletopaylesspropertytaxordraw lessattentiontotheirlargelandholdingsbysimplysub[dividingtheirlandtochildrenandother relativesbutmaintainingcontrolofitsoperation.additionally,thesefamiliesmayhavestrong networksofrelationshipsthatcontrolmanyaspectsofrurallife,soevenwhenlower[caste householdsbreachthebarriertolandownershiporfindthecollateraltofinancemigration,itis notcertainthattheirdecision[makingprocessandmodesofproductionareconduciveto agriculturaldevelopment forexample,theymaynothavetheeducationlevelsassociated 3 Wewereunabletosurveyhouseholdswhowereabsentatthetimeofsurveycollection. 11

23 withhigheradoptionrates,asevidencedbythepovertyalleviationprogramsthathave achievedlimitedsuccessinthewesternhills(wagle2010,maharjanetal.2012,nepalfy. Sototheextentthatmigrationandthesubsequentremittancescontributetohigher educationlevels,technologymaybebetterdisseminated,understoodandadopted,positively impactingtheagriculturalsysteminthevalley studieshaveshowneducationisassociated withhigheradoptionrates(thiemeandwyss2005,laiaetal.2012,mgbenkaetal.2012, FirdausandAhmad2010,OkaforandFabiyi2011,Ebojeietal.2012,AhmedandRayhan 2012,BansakandChezum2009,Carlettoetal.2009.Additionally,betteraccesstoeducation andgreateruseofeducationalopportunitiesmaynotonlyimproveadoptionoftechnological innovationsbutalsoincreaseagriculturalefficiency(pudasaini1983. Outputgrowthisnot onlydeterminedbytechnologicalinnovationsbutalsobytheefficiencywithwhichavailable technologiesareused (Laiaetal.2012.However,itremainsunclearwhethertheincreasein educationlevelsishomogenous;aspercapitaincomecontinuestoriseduetomigrant remittances,educationlevelsmaydisproportionatelyincreaseformoreprivilegedhouseholds, problematicwhenpromotingagriculture,throughtheviablemanagementofsmalland marginallandholdings,isimperativetothesocio[economictransformationofnepal(nepalfy, Alametal.2008,Maharjanetal.2012,FirdausandAhmad2010. Sowhileresearchconfirmsthathouseholdsareusingalargeportionofremittancesto educatetheirchildren,itshouldnotbeexpectedthatthislivelihoodstrategyhasgradually spreadtothemoredisadvantagedsocietymembers(thiemeandwyss2005,adefila2012, Mendola2007,Frostetal.2007,NepalFY.Additionally,withgrowingnumbersofhouseholds choosingtoallocateasignificantportionoftheirlaborforcetomigrationandeducationlevels rise,theymaybedissuadedthemfromparticipatingincommodityproductionatall.thereis evidencetosuggestthatlandlesshouseholdsmayonlyhavea precautionarydemand for agriculturalland,whichispurchasedtosimply0insure0againstfoodinsecuritywithnointention offarmingit(lez[vegaetal2004,gartaulaetal Thereisalsoevidencethatyoung peopleinnepalarenotreallyinterestedinworkinginagricultureanymore itis associatedwithhardworkandpoverty.soevenifremittancesallowruralhouseholdsfromall casteandethnicgroupstorelylessonchildren swork,increasingtimeandfinancesavailable forchildren seducation,doesnotmeanruralhouseholdswillbecommittedtoagriculture puttingnepalinavulnerablepositionduetofoodimports(bansakandchezum2009, Carlettoetal.2009,Maharjanetal.2012,Gartaulaetal Furthermore,landcontinuestobeassociatedwithsocialstatus,sohouseholdswhoare inafinancialpositiontodoso,choosetopurchaseitnonetheless,whichmeansmore agriculturallandsarebeingacquiescedtothelandrentalmarket sharecropping(thiemeand Wyss2005,Wagle2010,Maharjanetal.2012,Gartaulaetal.2012.Studieshavefound significantheterogeneitybetweenfamilyandsharecroppinglabor,whichmaybetheresultof themanyfinancialandstructuralrelationshipsfoundwithinthistypeofagriculturalsystem (AhmedandRayhan2012.Ithasalsobeenlinkedtolowadoptionratesinothercountries. Additionally,thelandsalesmarketmayposeaproblemtosustainablefoodsecurity agriculturallandsinthevalleyarebeingconvertedtourbanhousingdevelopments(massey 4 Whilethedemandforlandusedforsubsistenceagricultureshoulddeclineaslivingstandardsrise,households areabletoacquirelandastheirpercapitaearningsincrease(lez[vegaetal

24 13 etal.2010,thiemeandwyss2005,maharjanetal.2012.migrationmaybeimprovingthe socioeconomicstatusofanumberofhouseholdsthrougheducationlevelsandoff[farm income,butthesocio[demographiccharacteristicsofthoselefttofarming sharecroppers maybeaffectinglandandwaterusedecisionsandinfringementonagriculturallandsmaybe leadingtosub[optimalagriculturalinvestments(maharjanetal.2012,mgbenkaetal StagnatingproductivityinNepalresultsfrominappropriatelanduseandpoorland managementpractices;lowlevelsofeducationandinfringementonagriculturallandscouldbe hinderingagriculturaldevelopmentinchitwan affectingthetimespentonagriculture, influencingthequalityandquantityofwateravailable,alteringlivestockmortalityrates,and modifyingtheamountofsoilnutrientsthatareavailableforproduction(ahmedandrayhan 2012,Alametal.2008,FirdausandAhmad2010,Frostetal.2007.Optimistically,manyNepali landownersmaybechoosingtoadoptimprovedagriculturalinputsduetotenuresecurity providedbytheinheritance[basedlanddistributionsystem.however,thedistributionsystem mayalsobecontributingtothedwindlingfarmsizesinthecountry eighty[fourpercentofthe landholdingsinnepalarealreadysmall,soevenhighercastefamiliesmayhavelessthanone hectareofland(frostetal.2007,laiaetal.2012,maharjanetal.2012.landfragmentation, resultinginevensmallerlandholdings,couldfurtherexacerbatethedeclineinpercapita availabilityofagriculturalresourcesand/orimpedetheadoptionofnewpractices(laiaetal. 2012,Adeolaetal.2011,Maharjanetal.2012,FirdausandAhmad2010,Ahmed2012,Massey etal Degradationofnaturalresourcesisalsoseenasarootcauseforstagnatingagricultural productivity Nepalissmall,landlocked,andallNepalihouseholdsdirectlyorindirectlydepend onnaturalresources,soimprovingagriculturalproductivitydoesnotjustrequireacombination offactorscomprisingtherighttechnologyandaccesstophysicalinputs,italsorequires effectivelymanagingnaturalresources(frostetal.2007,kolawoleetal.2012.otherwise, animproperlyappliedpovertyalleviationprogramaimedtoincreaseagricultural productivitymayexacerbatetheproblemofenvironmentaldegradationinanalready vulnerableecology(mgbenkaetal.2012,masseyetal.2010.policymakersshouldalso considerthattheeffectsmightberealizedoveralongperiodoftime withoutproperpolicies andregulationsinplacethefertilelowlandscouldbeturnedintounfertilefields.the conventionalfarmingpractices,likeshorterperiodsoffallowland preventingthesoilfrom naturallyregeneratingitself aredestroyingthesoil ssupportiveabilityandresultinginlow agriculturaloutputs.withdeterioratingagriculturallands,nepalrequiresimprovedagricultural technologiesthatincreasecropyieldsbutsimultaneouslysupportstheproductivecapacityof itssoilandwaterresources(masseyetal Disturbingly,manytechnicalinterventionshavealreadybeendisseminatedtovarious households,butnepalesefarmershavenotadoptedthem;duringfieldstudyitwasobserved thatmostfarmershavelittle0to0no0knowledgeofsomeofthe modernizing improvementsthat thenationalagriculturalresearchinstitute(nariandthenepalagriculturalresearchcouncil (NARCsuggestshasbeenintroducedinNepal(seeManandharetal Puttingthis 5 Itshouldbenotedthatnoteventheresearchassistants,withagriculturalbackgrounds,hadknowledgeofthese technologiesandimprovements.studiesshouldbeconductedonboththeperspectivesoffarmersandagriculture specialists,inordertomakeclearwhereagriculturalknowledgeoverlapsandwhereagriculturalunderstanding divergesbetweenthesegroups.

25 obviousgapinknowledgeaside,theliteratureprovidessomeinsightsintofactorsleadingto lowadoptionrates:themoderntechniquesrequiredahigherleveloftechnicalexpertiseorit wasconstantlychangingthrougheducationandresearch,lackofmaterialinputs,limitedlabor, lackoftenuresecurity,and/orineffectiveextensionagents;allleadingtosub[optimal agriculturalinvestmentdecisionsinpreviousstudies(frostetal.2007,fao2008,alametal. 2008,Akteruzzamanetal.2008,FirdausandAhmad2010,OkaforandFabiyi2011,Mgbenkaet al.2012,adefila2012.onlywhendevelopmentinitiativessucceedinsecuringgreater participationbythosemostdependentonagriculture,smallandmarginalfarmers,willitbe possibletoimprovethesecurityandsustainabilityofvulnerablehouseholdsinthiscountry. However,mostmodernizingfarmingpracticesandequipmentmaynotbeeconomically viableforsmallandmarginalfarmers(firdausandahmad2010.considerthathouseholds withsmalllandholdings,lowincome,pooraccesstocredit,andlimitedtechnicalcapacity simplycannottakefulladvantageofinterventionsthataremoresuitableforlarge,mechanized farms (Laiaetal.2012.Additionally,studieshavefoundthatagriculturaltechniquesarebetter adoptedwhendevelopedbyfirstunderstandingwhatdrivesthefarmingcommunity sbehavior anddecision[makingprocesses,sotherestillremainsignificantworkrequiredtoadapt agriculturaltechnologyforthenepalesecontext.forexample,evenwiththe feminizationof labor womenperformingtraditionalmaleactivities ploughingisstillconsideredtaboofor womentodoinhinduculture;sowhilefemalelaborismoreabundantthanmalelabor,many improvedfarmingequipmentandmachinerystillhavenotbeenadaptedforwomen(frostet al.2007,mgbenkaetal.2012,laiaetal.2012,ahmedandrayhan2012,maharjanetal Fortunately,thereexistsacultivationpracticethatwouldtacklehead[onthepovertytrapof poorfarmassets,socialstatus,degradedresources,anddoesnotrequireploughing. ConservationAgriculture(CAisasustainableandanenvironmentallyfriendly managementsystemthatincludespracticessuchasminimumtillage,improvedcropvarieties, intercropping,andtheuseofcovercrops(laiaetal.2012.ithasthepotentialtomitigatethe depletionofsoilnutrients,increasecropyields,andconservesoilandwater(fao2008,fao 2012.CApracticesalsomakesitpossibletoinsertahighvaluevegetablecropinthe agriculturalsystembydecreasingturnaroundtimes diversificationofagricultureinfavorof morecompetitiveandhigh[valuecommoditiesmayhelpovercomethedeterioratingcondition ofsmallandmarginalfarmers;thesystemsmaintainstheirstaplebasewhilegenerating additionalincome(nepalfy.conservationagriculture(ca,asdefinedbythefao,has beenintroducedintheterai,butitisnotpracticedpermanently*becausethefarmersstill ploughthelandoruseintensivetillagepracticesforrice,inariceandwheat[based agriculturalsystem;ricefarmingispartofthecultureandmanysuchfarmingsystemsare subjecttoculturalandreligioushabits,butrainfedsmallholderagricultureinthiscountry,with significantloss[laboreffectsfromout[migration,maybenefitfromthewidespreaduseofca (FAO2008,FAO2012,Maharjanetal Optimistically,Nepal sfeedthefuturemultilyearstrategyistryingtoutilizecaas partoftheircountryinvestmentplan;however,povertyandmindsethasbeenidentifiedas factorsacceleratingenvironmentaldegradation,suggestingthateducationmustbea predeterminingfactorininformationassimilationandtechnologicaladoptionofcaamong morevulnerablefarmers inhierarchalsocieties,rulingeliteshavebetteraccesstovarious kindsofimprovements,andtechnicalinterventionswouldnotgraduallyspreadtothemore 14

26 disadvantagedsocietymembersunlessmarginalizedgroupsarespecificallytargeted(fao2008, NepalFY,Adefila2012,Mendola2007,Frostetal.2007.Studiesinsociallystratifiedcountries havefoundthatsocialstatusispartiallyresponsibleforthesustainabilityofagriculturalsystems (Alametal.2008,Maharjanetal.2012,FirdausandAhmad2010.However,awarenessofCA practicesareexpectedtogrowandcaisnotlabororcapitalintensive,somigrant householdsmaychoosetoadoptthematagreaterrateduetotheminimallabor requirements(fao2008,fao2012.withadequatepoliciestopromotecaamongsmalland marginalfamers,agriculturaldevelopmentcouldconvergewithnaturalresource conservation,makingmigrationandremittanceacatalystforsustainableagricultural developmentinruralnepal. 15

27 CHAPTER3 REMITTANCEANDTECHNOLOGYADOPTIONINAGRICULTURE Introduction Ruralareasofthedevelopingworldareexperiencingwidespreadinternal(fromruralto urbanandinternationalmigration,andthereareseveraleconomicreasonsprovidedinthe literaturetoexplainthemotivationsbehindit(seeyang2011,carlettoetal.2011,laiaetal. 2012,ThiemeandWyss2005,Quinn2009,etal.Stark1988.Whilethereremainsachallenge toquantifytherelativeimportanceofdifferentmotivations,manywouldagreethatmigration andremittancedecisionsarepartofanoverallhouseholdstrategythatfundamentallyimpacts thehouseholdandeventuallytheircommunity.itisimperativethatresearchershelpmake cleartheuncertaintiesconcerningsomeofthebenefitsandpitfalls migrationmayhavegrave implicationsforagriculturaldevelopmentandsubsequentlyfoodsecurity,especiallyformore agrarian[basedeconomies. Theroleofmigrationandremittances,especiallyfromundocumentedmigrants, remainsafruitfulfieldofresearch,andtodate,therehasbeenlittlepublishedonitsimpacton theadoptionofagriculturaltechnologyinnepal theperfectcountrytostudyallthefacetsof migrationandtheinevitableimplicationsforagriculture.aquarterofnepal spopulationlives onlessthanus$1aday,anditrepresentsacontinentwithmorethan halfoftheworld s1.1 billionpoorwholiveinruralareasanddependonagriculture (Wagle2010,Mendola2007. WhileNepal seconomyisstillhighlyagrarian,thegovernmentofnepal(gonencourages migrationintheaimstoreducepoverty,whichmeanseconomicopportunitiesoutsideof farminghavebeenimprovingforanumberofhouseholdsandincentivesforparticipatingin agriculturehavebeenweakening(thiemeandwyss2005,maharjanetal.2012,grigorianand Melkonyan2011. Thelabor[losseffectsfromout[migrationmaybedecreasingtheagricultural productivityforthosestilldependentonfoodproduction Nepalisafoodimportcountry,and themassexodusfromthecountrymaybeexacerbatingthesituationforruralhouseholdswho alreadyfacesevereconstraintsthatstemfrommarginalconditionsformostformsof agriculture,likesmalllandholdingsizeandfrequentnaturaldisasters(thiemeandwyss2005, Wagle2010,Maharjanetal.2012,NepalFY,Yang2011,Masseyetal.2010.Manyofthemare alsoworkingwithimperfectdevelopingmarketsforinputs,products,credit,andinsurance, whichfunctionsporadicallyiftheyexistatall,withgraveimplicationsfornepal sagricultural productivity improvingthelivelihoodsofsmallandmarginalfarmersisconsideredthemain objectiveinu.s.governmentinitiativessuchasusaid sfeedthefuture(nepalfy. Furthermore,researchsuggeststhatmigrantremittancesmayonlybefundinghigher consumptionofnon[investmentgoods,suchasfoodandclothes.whilethismaybeimportant ifhouseholdsarestartingatverylowconsumptionlevels,remittance[recipientsmaybecome fullydependentonit,whichispotentiallyhazardousforthemostvulnerable thesudden deathofamigrant,theirpropensitytoremitlesseramountsovertime,andnegativeshocksto exchangeratesmayallleadtodeleteriouslyconsequencesforthehouseholdsleftbehind(yang 2011,Frostetal.2007,GrigorianandMelkonyan2011.Itmayalsobeakeyfactordriving 16

28 differentiationamongwealthgroupsresultinginincreasinginequality(wagle2010.andwhile manywouldagreethatremittancehasthepotentialtoalleviatepoverty,increasefoodsecurity andeventuallypromotedevelopment,theliteraturesuggestsmixedresults.somestudiesfind thatmigrationandremittancehaveapositiveeffect(quinn2009,adamsandpage2005, Lokshinetal.2010,Carlettoetal.2011,otherssuggestnoorlimitedeffect(Bansakand Chezum2009,Lez[Vegaetal.2004,andsomefindanegativeone(Rozelleetal.1999,Wagle 2010,GrigorianandMelkonyan2011,Adeolaetal Despitetheweightyimplicationsforthecountry sagriculturalproductivity,littleis knownabouttheroleofmigrationandremittancesontheagriculturalpracticesofresource[ poorsmallholders,especiallyinnepal sterai thefertilelowlandswiththemostpromising meansofattainingself[sufficientagriculturalproduction.ifhouseholdsparticipatingin migrationusetheremittanceincome,whichalreadyamountsto25.83%ofnepal sgdp,to adoptagriculturaltechnology remittancecouldhelpincreaseagriculturalproductivityby fundingagriculturaltechnologythatwouldotherwisebetoocostly migrationandremittance maybeacatalysttoagriculturaldevelopment,improvingthesustainabilityandsecurityof numeroushouseholdsinthecountry(nepalbastrabank2014,quinn2009,thiemeandwyss 2005,Mendola2007,Frostetal.2007,Lez[Vegaetal.2004,FirdausandAhmad2010,McCalla etal.2010,adeolaetal.2011,ahmedandrayhan2012,laiaetal.2012,animetal Thismicro[levelstudyaimstoanswerasignificantquestionregardingtheimpactofan importantinstitution,migration,ontheagriculturaldevelopmentofasmall,landlockedcountry withlimitedagriculturalresources providingforanoverlyoptimisticviewfailstoprovidean appropriateframeworkforregulationandpolicyformationformorevulnerableeconomies.the restofthepaperproceedsasfollows.thedataandmethodologysectionsdiscussvariables, modelandtheestimationprocedureused becausetheissueofendogeneityinestimatingthe impactofmigrationandremittanceonvarioushouseholddecisionswasfrequentlymentioned intheliterature,weusedaninstrumentalvariableapproachtoaccountfortheselectivitybias. WhilearesearcherlivedthroughanagriculturalseasoninNepal,awiderangeofsocialand economicfeaturesofthesociety,suchasresourceuseandpropertyrightswereclarified providingthesocial,institutional,andenvironmentalframeworkforthestudy.theresults sectiondiscussestheimpactofmigrationandremittanceonthenumberofagricultural technologiesadoptedandweconcludebysummarizingtheimplicationsandmakingpolicy suggestions. Data IncollaborationwithUSAIDandtheInternationalMaizeandWheatImprovement Center(CYMMYT,anon[profitorganizationthatresearchessustainabledevelopment,we collectedcross[sectionaldatainnepalduringthespringof2013.chitwan,adistrictinthe south[centralregionofthecountry,wasselectedbasedonthesampleofthepopulation participatinginmigrationandagriculturedominance.overatwo[monthperiod,nepali researchassistantsusedaquestionnairedesignedtocollectbothqualitativeandquantitative datatosurveyastrataofsmall,medium,andlargesizelandholdersrandomlyselectedfroma listofhouseholdslocatedinsevenvillagedevelopmentcommittees(vdc:bachhauli, Birendranagar,Chainpur,Jutpani,Kathar,Padampur,andPiple;alllocatedineasternChitwan. 17

29 Thesurveywasadoptedfromtwopreviousstudies:oneconductedbytheUniversityof GuadalajaraandPrincetonUniversityandtheotherconductedbytheUniversityofMichiganin Nepal.Thesurveycapturesinformationaboutindividualswhoarepresentandthoseindividuals whoarenotpresentbecauseofmigration,anditwasfirsttestedduringafocusgroupand modifiedforappropriatecontent. Whilethissampleconsistedof396households,manydidnotmakedecisionsabout agriculturaltechnology(theyleasedoutalltheirlandorfeltuncomfortablerevealing informationaboutcaste,ademographicvariablethatresearchershavesuggestedpartially explainsthechoiceoflivelihoodstrategyinnepal(wagle2010,masseyetal.2010,williams 2009.Restrictingthissampletothosewhomadeagriculturaldecisionsin2012andanswered informationregardingcasteyieldsasampleof346.thedatasetisusefulinthatitnotonly containsfamilyprofile:education,health,nutrition,income,assets,andexpenditures,butit alsoincludesthehousehold sagriculturalactivities,suchasinputuseandagriculturaloutput, andoff[farmbusinessactivities.thedatasetalsocontainsanumberofhouseholdand communitylevelvariables consistentwithothercross[sectionaldatausedintheliterature (Quinn2009;GrigorianandMelkonyan2011. Thedependentvariableofinterestisthenumberofagriculturaltechnologiesthat householdiutilized( in2012.itisadiscreetvariablerangingfrom0to10,withtheaverage numberoftechnologiesadoptedbyhouseholdsinchitwanbeing3.8.thechoiceofvariableis consistentwithpreviousresearchthatconsiderstheintensityofadoption;sometechnologies arepresentedinapackagewithseveralcomponents,whichcanbeadoptedtogetheror independently(federetal.1985.someofthemodernizingimprovementsincludedinthe questionnaireweretakenfromareportpublishedbythenationalagriculturalresearch Institute(NARIandtheNepalAgriculturalResearchCouncil(NARC(seeManandharetal. 2009thatsuggestedthetechnologieshadbeenintroducedinNepal.Theagricultural technologiesincludedinthesurveyweretheironplough,animaldrawncart,powertiller, shallowtubewell,deeptubewell,rower/dhikipump,andtractor,amongothers. Becausetheissueofendogeneneityinestimatingtheimpactofmigrationand remittanceonvarioushouseholddecisionswasfrequentlymentionedintheliterature(rozelle etal.1999;quinn2009;grigorianandmelkonyan2011;basankandchezum2009;adamsand Page2005;Carlettoetal.2011,weusedaninstrumentalvariableapproachtoaccountforthe selectivitybias.oneequationassumesallvariablesontherighthandsideareexogenous,and whileatwo[stageleastsquares(2slstechniqueisappropriateforaddressingtheproblemof endogeneity,wewereunabletostudymigrationandremittancetogether.weappliedathree[ stageleastsquares(3slstechniquetoestimatemigrationandremittancessimultaneously so thereareanadditionaltwovariableswhicharebothexplanatoryanddependentvariablesin theanalysis:thenumberofindividuals(overtheageof12fromhouseholdiwholeftthehome inthepreviousyear 6 ( andtheaverageamountofmonthlyremittancesinus$receivedby thehouseholdinthepreviousyear(.wedidnotuseadichotomousvariableforwhether remittancewasusedtofinanceagriculturalactivities(quinn2009duetofungibilityreasons remittancescanbeusedforvariouspurposes. 6 Theageof12wasselectedtocaptureindividualswhowouldhaveparticipatedinhouseholdproductionhadthey livedathome. 18

30 Theexplanatoryvariablesusedinthepaperconsistsofvectors,,and,with variablesin beingthesocio[economiccharacteristicsofthehousehold,suchasageof householdhead,yearsofeducationofhouseholdhead,income,totalsizeofcultivatedfarm plotsoperatedbythehousehold,theamountofownedlandthatwasleasedout,andthe numberofagriculturalinfrastructureaccessedlastyear.thevector alsoincludes dichotomousvariablesindicatingwhetheragricultureisthemainsourceofincome,andifthe householdexperiencedlaborscarcityinthepreviousyear.thevectors,and are instrumentvariablesthatareusedtoidentifyboth and,butarenotcorrelatedwiththe numberofagriculturaltechnologiesadopted.theinstrumentvariablesexplainboth and withoutexplaining.thevariablesin arethenumberofmigrationexperiencesand thenumberofhouseholdsinthecommunitythatparticipateinmigration,whichwasobtained fromgon snationalpopulationhousingcensus(2011andthevariablesin arethenumber ofhousesownedbyhouseholdi0andwhetherornotremittanceswasusedtofinanceland.the descriptivestatisticsofthevariablesusedinthestudyareintable3.1. Thereareexpectedsignsforthevariablesin.Theaverageageofahouseholdheadin Chitwanis52.7,whichmaybeconsideredelderlyindevelopingcountries;forexample,astudy ofhorticulturalproductioninnigeriasuggestedthat40yearsofagewasconsideredanolder farmer(okaforandfabiyi2011.however,weexpectagetopositivelyimpactthenumberof adoption;agemayindicatetheleveloffarmingexperience,whichhasbeenpositively associatedwithadoption(adefila2012.also,thereisevidencethatyoungpeopleinnepalare notreallyinterestedinworkinginagriculture(gartaulaetal.2012,thiemeandwyss2005. Somestudiesfoundthateducationhasapositiveeffect(Mgbenkaetal.2012,Firdausand Ahmad2010,BansakandChezum2009,butitispossiblethatincreasededucationlevelsmay haveanegativeimpact(adeolaetal.2011.itmaybeeasierformoreeducatedindividualsto usenewtechnologiesoritmayleadtooff[farmincome. Weexpectincome,whetheragricultureisthemainsourceofincome,hectaresofland cultivated,andthenumberofagriculturalinfrastructure(suchasextensionandirrigation accessedtohaveapositiveimpactonthenumberoftechnologiesadopted.wealthierand largerlandownersmayhavemoreresourcesandtheincentivestopaythecostsofnew technologies(firdausandahmad2010;ebojeietal.2012;federetal.1985.some technologiesalsorequirecomplimentaryinputsthatareacquiredthroughextension,market, andotheragriculturalinfrastructures(firdausandahmad2010,mgbenkaetal.2012,agrawal andgupta2005.weexpecttheamountofownedlandleasedouttohaveanegativeeffect;as moreagriculturallandsareacquiescedtothelandrentalmarketinnepal,whichis sharecropping,therewillbelessincentivestoinvestinagriculturalproduction(ahmedand Rayhan2012,Maharjanetal.2012,Gartaulaetal.2012.Laborcomplimentarytechnologysuch asthetractor,mayalsobeaffectedbytheavailabilityoflabor.mostofthelandownersin Chitwanproducerice,whichstillremainsalaborintensiveactivity,evenifatractorisusedto ploughtheland.laborscarcityhasnegativelyimpactedadoptionofagriculturaltechnology before(federetal.1985,acemoglu

31 Table3.1.TechnologyAdoption,descriptivestatisticsbyhousehold,Chitwan2013 Variable Description Mean Dependent Variables Standard Deviation Migrants ofhouseholdmemberswholivedaway Remittances averagemonthlyremittancesreceivedinus$ Technology ofagriculturaltechnologyadopted Exogenous Variables Income averagemonthlyincomeminusremittancesinus$ MainSource agricultureismainsourceofincome(0/ Age ageofhouseholdhead Caste HighCaste(baseLowCaste(2Mongolian(3Indigenous ( Education yearsofeducationofhouseholdhead MaleEducation yearsofeducationofhouseholdmales FemaleEducation yearsofeducationofhouseholdfemales HouseholdSize ofhouseholdmembers Dependents ofhouseholdmembersunder12andover OwnedLand totalofhectaresownedbyhousehold CultivatedLand totalofhectarescultivatedbyhousehold LeasedOut totalofhectaresownedbyhouseholdandleasedout Infrastructure ofagriculturalinfrastructureused WaterQuality waterqualityisbad(0/ SoilQuality soilqualityisbad(0/ LaborScarcity householdexperiencedlaborscarcity(0/ Instrument Variables Experiences ofmigrationexperiencesinhousehold Participation ofhouseholdsinthecommunitythatparticipatedin migration Houses numberofhousesownedbyhousehold Financed remittancefinancedlandpurchase(0/ Methodology Wehaveassumedthathouseholdsmakethedecisionaboutmigration,remittance,and adoptionofagriculturaltechnologyaspartofanoveralllivelihoodstrategy.therationale behindtheassumptioncomesfromhouseholdbehaviorindevelopingcountries rural householdsaretypicallyinfluencedbyseveralnatural,market,andsocialuncertainties.these householdsaregenerallydependentonagriculturalproduction,whichmeanstheyare 20

32 vulnerabletoenvironmentalhazards,suchasweather,naturalresourcedegradation,and naturaldisasters(frostetal.2007.theywill self[protect therebyexercisingcautionintheir productiondecisionsunlessthereareinstitutionsinplacetoprovideinsurance.povertyisalso overtlyconcentratedamongruralhouseholdssolelydependentonagriculture,andtheymay nothavetheavailablecredittofinanceinvestments(mendola2007. Migrationcouldactasaninsurancetomitigateriskassociatedwithcommodity production(migrantsendsremittanceincasethecropfails,whichmeansthenumberof migrantsispositivelyassociatedwiththeadoptionofagriculturaltechnology.themore migrantsahouseholdsendsaway,themoreagriculturaltechnologythehouseholdwilladopt becausetheyareabletosendbackmoreremittancesincasethecropfails.furthermore, migrantremittancescouldplayasignificantroleinfinancingproductivity[enhancing technologies thelackofcreditbeingamajorconstrainttopurchasingagriculturaltechnology inpreviousstudies(frostetal.2007,akteruzzmanetal.2008,alametal.2008,firdausand Ahmad2010,Maharjanetal.2010,Mgbenkaetal.2012,OkaforandFabiyi2011,Quinn2009. Thenumberofmigrantsandremittanceshasbeenusedtotesttheriskandcredithypothesis before;theconceptualmodelisadoptedfromrozelle(etal.1999,quinn(2009,andgrigorian andmelkonyan(2011.itproperlyseparatestheimpactofmigrationandremittanceonthe dependentvariableofinterest. First,considerthatthehouseholdchoosesthenumberofmigrantstosendout(internal andinternational: = (1 where isthevectorofhouseholdcharacteristics,whichincludeshouseholddemographics, humancapitalandphysicalcapitalvariables,and isthevectorofinstrumentsusedto properlyidentifym,andaretheerrorterms.theindividualhouseholdisdenotedbyi=1,2,3,,n. Giventhenumberofmigrants,theywillmakethedecisionontheamounttoremit,R.It isdeterminedas: = ( where isthevectorofhouseholdcharacteristics, isthepredictedvaluefromthefirst equation,and isthevectorofinstrumentstoproperlyidentifyr.0 0 Finally,thehouseholdwillchoosethenumberofagriculturaltechnologiestoadopt:0 = (30 wherethepredictedvalues and 0fromthefirsttwoequationsareincludedinthe investmentequation.so,thenumberofindividualsfromhousehold0iwholivedawayinthe previousyear andaveragemonthlyremittancesreceived,aretwovariablesthatareboth explanatoryvariablesanddependentvariables.thethree[stageapproachequations: = (1 21

33 = (2 = (30 Results Testing0for0Endogeneity0and0Instrument0Validity00 0 Weformallytestforendogeneity,andtheresultsfromtheHausman[Wutestsupport thechoicetouseaninstrumentalvariableapproach.thenullhypothesisofexogeneityof migrationandremittancesinthetechnologyregressioncanberejectedatthe90%confidence level;thet[statisticontheindividualresidualvariablesare1.80and[0.67,respectively. However,remittancesshouldnotbeviewedasexogenous;householdswithmoremigrants shouldreceivemoreremittances.furthermore,whenthereismorethanonevariablebeing testedforendogeneity,thetestisanf[testofjointsignificance(hillpg.421.otherpapers havedemonstratedthedifferenceintheprobitandtheinstrumentalvariableapproach(see Quinn2009,andmanyothershaveconcludedthatanunobservablefactorinfluencingthe propensitytomigrateandremitiscorrelatedwiththeregressionerrorterms,ifmodeling householdinvestmentdecisions,thereforemakingtheprobitorolsestimatorsbiased. Wealsotesttheinstrumentsforvalidity.Avalidinstrumentmustsignificantlyimpact and andbeuncorrelatedwiththetechnologyregressionerrorterm.thetestsofjoint significanceoftheinstrumentsinthemigrationandremittanceequationsyieldanf[test statisticof22.95and10.17,respectively.torejectthehypothesisthattheinstrumentsare weakorthatthetruevalueoftheinstrumentsarezero,theruleofthumbisthatthef[test statisticshouldbegreaterthan10(hillpg.414.theinstrumentspassthefirstcondition.we usethesargan[hansentesttodeterminewhethertheinstrumentsareuncorrelatedwiththe errorterm,andthattheinstrumentsarecorrectlyexcludedfromtheestimatedequation.the nullhypothesisisthattheinstrumentsarevalid,andwefailtorejectthenullforthevariable vectors,and withachi[squarevalueof2.20and0.52.theseresultinp[valuesof0.14and 0.47,respectively. Summary0of0Results First0and0Second0Stage0 0 Theresultsoftheestimationofequations(1and(2arepresentedinTable3.2.They arerunwithrobuststandarderrors,andsomepatternsofmigrationandremittancebehavior arerevealing.aspredicted,thenumberofmigrationexperiencesencouragesfurthermigration. Thecoefficientonexperienceispositiveandhighlysignificant.Wefindthatitisthefactorthat encouragesmigrationthemost.thisisnotsurprising;nepalhasacultureofmigration,thieme andwyss(2005saidithasbecome institutionalized.theassociationwithamigrantalso greatlyincreasestheoddsofout[migrationduetoincreasedinformationflow,assistancewith employmentopportunitiesandhelpwithaccommodations(thiemeandwyss2005,wagle 2010.Consistentwiththeliterature,householdswithmoredependents(childrenandelderly negativelyimpactthenumberofhouseholdmembersmigrating,whilelargerhouseholdsare sendingoutmoremigrants(grigorianandmelkonyan

34 Surprisingly,familieswithlargerpropertiesarenotsendingoutmoremigrants.Land ownershipinnepalisassociatedwithsocialstatusandwealth,andconcentrationofland holdingstoactascollateral,wouldmeanthesehouseholdshavebetteraccesstoinstitutional credit,whichweexpectedwouldputtheminabetterpositiontosendoutmigrants.the negativeimpactofownedlandmayindicatethatlargerlandownershaveaccesstosufficient income[generatingsourcesinchitwan,anddonotneedtosendmoremigrantsforeconomic opportunitiesoutsidethedistrict.landownershipcanbeaproxyforwealth,whichmeans householdswithalotofwealthdonothavetheincentivetoleave(griogorianetal Theremaybeotherreasonsaswell.Considerthatlargerlandownersmayneedmore householdlabortocultivateland,especiallyifthecultureofmigrationcreateslaborscarcity duringpeakagriculturalseasons.orthenegativesignreflectsthehandfulloflandownersinthe samplewhoownedverylargeplots.forexample,wefoundonehouseholdownedover60 hectaresofland(averageis1.10hectares,butwasremovedfromthesampleasanoutlier.the coefficientonownedlandisnotverylargeandisonlysignificantatthe90%confidencelevel. Table3.2.TechnologyAdoption,resultsofthefirstandsecondstageregressions Migration Remittances Robust Robust Coefficient Standard Coefficient Standard Error Error MaleEducation FemaleEducation [ Income 0 0 [ HouseholdSize 0.42 *** 0.06 [75.88 *** Dependents [0.17 *** ** OwnedLand [0.04 * Caste Low [0.4 ** ** Mongolian [ * Tharu(Indigenous [0.4 ** WaterQuality [0.43 *** 0.16 SoilQuality [0.59 * 0.34 MigrationExperience 0.43 *** 0.09 Participate 0 0 MHAT *** Houses ** Financed ** NumberofObservations Chi[Squared Note: ***, **,and * denotesignificanceat1%,5%,and10%respectively. R[Squareisnotapplicablein3SLS 23

35 Coupledwithourfindingsoftheethniccompositionofhouseholdssendingmore migrants,therecouldbeamoreprosaicreasonwhylandholdingsizeinchitwandoesnotactas collateralformigration.otherstudiesfoundthatnotallhouseholdsinnepalhavesufficient income[generatingsources;differentialaccesstolandispresent,withthemajorityowning smallormarginalsizedplots(wagle2010.wealsofoundthatsomehouseholdsdonotown land,butrentthelandtheycultivate.however,weproposethatwhilemarginalizedandlower castehouseholdshavegenerallyfairedwithsmallerlandholdingsinotherpartsofnepal (resultinginlimitedmobility,thereareculturalnormsthataredrivingthedecision[making practicesofthetharuorindigenouspeoplethatshouldbeaccountedforinthemigration analysis.theyhavelargerlandholdings,butseemtobemoreattachedtotheir ancient landholdingsthanthepeoplewhomigratedtochitwaninthepastfiftyyears.ourstudyfinds thattheysendfewermigrantsthanhighercastehouseholds.theindigenouspopulationwould notmigrateeveniftheyhadthecollateraltodoso.however,thisexcludesthelowercaste householdsthataresendingoutfewermigrants;theydohavesmallerlandholdingsinchitwan. Finally,itappearsthatthefactorsthatnegativelyimpactthenumberofmigrantsthe mostarewaterandsoilquality.weexpectedapositiveimpactforboththesevariables;poor landandinputqualitysuggestsalowerreturntoagriculture,whichshouldencouragemigration outofchitwan,asithasdoneinthehillyregionsofnepal(maharjanetal.2012.otherpush factorsthathaveencouragedmigrationbeforeinclude:higherunemployment,lowliteracy rates,corruption,politicalinstability,lackofinfrastructure,andpooraccesstocredit,insurance marketsandgovernmentservices.thenegativeimpactofpoorqualityagriculturalinputson thenumberofmigrantscouldbeoneoftwothings:poorqualityinputsreducetheabilityof householdstomeetthecostsofmigrationoritproducesmoreuncertaintyaboutleaving householdmembersbehind. Theremittanceequationalsohassomeinterestinginsightstooffer.Asexpected,the coefficientonmigrationispositiveandsignificant.thenumberofhousesownedbythe householdandwhetherremittancesfinancedpreviouslandpurchasesencouragesremittance receipts,providingstrongsupportthatremittancesarereceivedbymoreprivilegedhouseholds. Thosewhoownmorehousesandlandplotsareinabetterpositiontoreceivemore remittances.inaddition,transferstohouseholdswithmoredependentsarehigherthanthose withfewerdependents,butsmallerhouseholdsreceivemorethanlargerhouseholds.itis plausiblethatthepercapitaremittanceflowdeclineswithhouseholdsize,butitisnotexactly clearwhylargerhouseholdsreceivelessremittance.itmaybethatlargerhouseholdsare perceivedtobemorefinanciallysecurebecausemorehouseholdlaborisavailabletoworkon thefamilyland.largerhouseholdscanalsosharerisksandappeartobelessvulnerable. Intermsoftheethnicitycompositionofthehousehold,itisinterestingtonotethat whilelowercastefamiliessendfewermigrantsthanhighercastefamilies,theysendbacklarger monthlysumsofremittances.thiscouldsuggestthathighercastemigrantsearnlessabroad (andtherefore,remitless,theyarelesslikelytoreturn(hencenoneedtoremitasmuch,or theyaremigratingforlongerperiodsoftime.highercastemigrantsmaybemigratingwiththeir wholeimmediatefamily,whichhasbeenshowntoresultinsmalleramountsofmonthly remittancesinpreviousstudies(yang2011.highercastefamiliesmaynotbesending remittancesonamonthtomonthbasis,butinalargesumafteralongerstay.studieshave foundthatmigrantshaveaninterestinhowtheremittancemoneyisused,preferringthatitis 24

36 investedinmoresubstantialneeds,liketheconstructionofanewhouseorarepaymentof loans(yang2011,thiemeandwyss2005.itshouldalsobenotedthatremittanceindicators maybesubjecttomeasurementerror somehouseholdsmayunderstatetheirtrueincome, andhighercastehouseholds,ormoreprivilegedfamilies,wouldhavethegreaterincentiveto doso(grigorianandmelkonyan2011.toevadetaxes,forexample. Summary0of0Results Third0Stage0 0 Theresultsoftheestimationofequation(3usingrobuststandarderrorsarepresented intable3.3.theresultssupporttheriskhypothesis,butarenotconsistentwiththecredit hypothesis.thecoefficientonremittanceisinsignificant,butitisnegative(goingagainstthe credithypothesis.indirectly,thissuggeststhatremittancesdonothelprelaxcreditconstraints inordertoinvestinagriculturalproductionforfamiliesleftbehind.oneexplanationcomes fromtheneoclassicalmodeloflaborsupply,whichsuggeststhatremittance,anon[labor income,maydecreasehoursdevotedtofarming.furthermore,householdswithmoreincome (excludingremittancearechoosingnottoinvestinmoreagriculturaltechnology.the coefficientissmallandnegligible,butitisnegative.thiseithersupportsthetrendthat householdsinchitwanaremovingawayfromagricultureproductionwithsomeofthem becomingsolelydependentonremittances(theimeandwyss2005,maharjanetal.2012orit suggeststhehouseholdstookoutlargeamountsofagriculturalloanstofinancethe technologies.thismakessensewhenconsideringthathouseholdswithagricultureasthemain sourceofincomeadoptsignificantlymoretechnologiesthanthosethatarenotdependenton agricultureproduction.thesehouseholdshadtofinancethetechnologiessomehow. Table3.3.TechnologyAdoption,resultsofthirdstageregression Technology Coefficient RobustStandardError Age * 0.01 Education * 0.02 Income [ * 0.00 MainSource ** 0.12 Cultivated LeasedOut [ LaborScarcity [ Infrastructure *** 0.03 MHAT *** 0.08 RHAT [ C NumberofObservations 346 Chi[Squared Note: ***, **,and * denotesignificanceat1%,5%,and10%respectively. R[Squareisnotapplicablein3SLS 25

37 Thecoefficientsonage,educationandmigrationarepositiveandsignificant,suggesting thatolderandmoreeducatedhouseholdheadsandhouseholdsthathavemoreabsentfamily membersduetomigrationadoptmoreagriculturaltechnologies.notonlyarethemigrants insuringagainstcropfailure,buttheyarealsomostlikelysendingbackknowledgeor informationaboutlaborsavingtechnologies.themagnitudeonmigrationislarge.thenumber ofagriculturalinfrastructuresaccessedalsohasapositiveimpactonthenumberofagricultural technologiesadopted,allsuggestingthatifhouseholdsarestillinterestedinagricultural production,eitherforpersonalconsumptionorforcommercialreasons,thenmigrationis providingtheimpetusforsomeagriculturaldevelopment.itisinterestingtonoteatthispoint thatcultivatedland,leasedoutlandandlaborscarcityarenotsignificantdueto heteroskadasticity,andtheneedtouserobuststandarderrors. Conclusion ThepaperusesdatafromChitwan,Nepaltotesttheimplicationsofmigrationand remittanceflowsonthebehaviorofreceivinghouseholds.wefoundthatremittancehasno impactonthenumberofagriculturaltechnologiesadopted,butmigrationhasasignificantand positiveone.policymakersinterestedinincreasingagriculturaltechnologyadoptionneedto targethouseholdsreceivingthemostremittances.first,notallhouseholdsinnepalareableto affordtherelatedexpensesofmigration,especiallytointernationaldestinations.thereare inherentdisadvantagesfacinglower[casteandethnicgroups,andeveniflower[caste householdsfindthecollateraltofinancemigration,itisnotcertainthattheirdecision[making processandmodesofproductionareconducivetoagriculturaldevelopment forexample, theymaynothavetheeducationlevelsassociatedwithhigheradoptionrates,asevidencedby thepovertyalleviationprogramsthathaveachievedlimitedsuccessinthewesternhills(wagle 2010,Maharjanetal.2012,NepalFY. Disturbingly,manyofthetechnicalinterventionsthathavebeendisseminatedto variousnepalihouseholdshavenotbeenadopted;duringfieldstudy,itwasobservedthatmost farmershadlittle0to0no0knowledgeofsomeofthe modernizing improvementsthatthe NationalAgriculturalResearchInstitute(NARIandtheNepalAgriculturalResearchCouncil (NARCsuggestedhadbeenintroducedinNepal(seeManandharetal.2009.Itshouldalsobe notedthatnoteventhenepaliresearchassistants,withagriculturalbackgrounds,had knowledgeofthesetechnologiesandimprovements.studieshavefoundthatagricultural techniquesarebetteradoptedwhendevelopedbyfirstunderstandingwhatdrivesthefarming community sbehavioranddecision[makingprocesses,sotherestillremainsignificantwork requiredtoadaptagriculturaltechnologyforthenepalesecontext.weshouldalsoconsider thatsomeofthesetechnologiesarenoteconomicallyviableforsmallandmarginalfarmers, whichisthemostcommonlandholdingsizeinnepal(firdausandahmad2010,wagle2010. Withgrowingnumbersofhouseholdschoosingtoallocateasignificantportionoftheir laborforcetomigration,somemaybedissuadedfromparticipatingincommodityproduction atall.thereisevidencetosuggestthatlandlesshouseholdsmayonlyhavea precautionary demand foragriculturalland,whichispurchasedtosimply0insure0againstfoodinsecuritywith nointentionoffarmingit(lez[vegaetal2004,gartaulaetal.2012.landowners,thatchoose nottoparticipateinagricultureproduction,maynotbesellingittothosewhodo.furthermore, 26

38 rulingelitesinhierarchalsocietiesalreadyhavebetteraccesstovariouskindsofimprovements, andtechnicalinterventionswouldnotgraduallyspreadtothemoredisadvantagedsociety membersunlessmarginalizedgroupsarespecificallytargeted(fao2008,nepalfy,adefila 2012,Mendola2007,Frostetal.2007.Onlywhendevelopmentinitiativessucceedinsecuring greaterparticipationbythosemostdependentonagricultureandthosewhohavetheavailable fundstoinvestintheagriculturalinfrastructureofthiscountry,willitbepossibletoimprove thesecurityandsustainabilityofvulnerablehouseholdsinnepal. 27

39 CHAPTER4 REMITTANCEANDCONSERVATIONTECHNOLOGYADOPTION Introduction Becauseruralhouseholdsrepresentupto70percentofadevelopingcountry stotal population,agriculturaldevelopmenthasbecomethecruxofmanynationalandinternational developmentinitiatives(mendola2007,frostetal.2007,firdausandahmad2010,ebojeietal. 2012,Kolawoleetal.2012,Mgbenkaetal.2012,Adefila2012,NepalFY.However,improving agriculturalproductivitydoesnotjustrequireacombinationoffactorscomprisingtheright technology,effectiveextension,accesstophysicalinputs,andadequatemarketsupport services,butitalsorequireseffectivelymanagingnaturalresources(frostetal.2007,kolawole etal.2012.otherwise,animproperlyappliedpovertyalleviationprogramaimedtoincrease agriculturalproductivitymayexacerbatetheproblemofenvironmentaldegradation(mgbenka etal.2012.improvingagriculturalproductivityattheexpenseoflanddegradationmayhave graveimplicationsforthelong[runproductivecapacity,andtherebyfoodsecurity,ofacountry. Sustainabledevelopmentbecomesinherentlymorecomplexwhengrowingnumbersof farminghouseholdsareparticipatingininternal(fromruraltourbanorinternational migration.migrantremittancesmaybeusedforconsumption,withverylittlebeingusedfor sustainableinvestmentorworse,maycontributetothedegradationofanalreadyvulnerable environment(maphosa2007,lez[vegaetal.2004,masseyetal.2010.increaseinhousehold incomenaturallyimpactstheenvironment.forexample,increasedremittancehasbeen linkedtoclearingnewlandinelsalvador,whichhasledtosevereerosionand environmentalrisks(lezlvegaetal.2004.nepalisanidealcountrytostudyallthefacetsof migration,remittance,andtheirimpactonnaturalresourceconservation.thegovernmentof Nepal(GONstartedencouragingmigrationintheaimstoreducepoverty,andremittance alreadyamountsto25.83%ofgdp,anditisexpectedtogrow(nepalbastrabank,2014, AgrawalandGupta2005,ThiemeandWyss2005,Yang2011. Nepalissmall,landlocked,andallNepalesedirectlyorindirectlydependonnatural resources.however,aquarterofnepal spopulationstillliveonlessthanus$1aday,andithas oneofthelargestinequalityindexesinasia(wagle2010.thepoor byvirtueofhavingless secureaccesstoincome,creditandtimeconstraintssothatanynewendeavorhastocompete withestablishedlivelihoodactivities areunableandoftenunwillingtoinvestinnatural resourcemanagement(frostetal.2007,ahmedandrayhan2012,mgbenkaetal.2012.for example,ifahouseholdfaceslaborshortageduetoout[migration,itmaybeinhibitedfrom usingconservationmethodsthataremorelaborintensive.outlmigrationmayalsoinduce moralhazards, Oftenoverlookedarethelossofproductivelaborforthehomecountryas wellasthepotentialdisincentivestowork,study,andstayinthehomecountryforthefamily membersleftbehind (GrigorianandMelkonyan2011.Ontheotherhand,adecreaseinhours devoted0to0farmingmayhelpconservationbyallowingthelandtoremainfalloworfor 28

40 householdstoplanttreesinsteadofcultivatingcrops(conservationmethodsrequiringlow[ maintenance. 7 Onlywhendevelopmentinitiativessucceedinsecuringgreaterparticipationinnatural resourceconservation,willitbepossibletomeettheobjectivesofdistributingthebenefitsof improvedagriculturalproductivitytothemostvulnerable.ifcarriedoutappropriately,thelarge remittancereceiptshavethepotentialtofundresource[conservingtechnologies(firdausand Ahmad2010.However,ifhouseholdsuseremittanceincometoadoptagriculturalpractices thatdegradetheenvironment,thedevelopmentalimpactofmigrationandremittancemaynot besustainable(fao2008.thesub[optimalagriculturalinvestmentsmayexacerbatethe problemofenvironmentaldegradation.forexample,movingfromoxenpulledwooden/iron ploughtoatractorisagoodagriculturetechnologybutitincreasessoilsedimentlossresulting indecreasedsoilproductivityandincreasedwaterpollution.degradationofnaturalresources iswidelyseenastherootcauseforstagnatingagriculturalproductivity,whichwouldnegatively impactfoodsecurity(fao2008. Thismicro[levelstudyaimstoanswerasignificantquestionregardingtheimpactofan importantinstitution,migration,onthesustainableagriculturaldevelopmentofacountrywith limitedagriculturalresources providingforanoverlyoptimisticviewfailstoprovidean appropriateframeworkforregulationandpolicyformationformorevulnerableeconomies.the restofthepaperproceedsasfollows.thedataandmethodologysectionsdiscussvariables, modelandtheestimationprocedureused becausetheissueofendogeneityinestimatingthe impactofmigrationandremittanceonvarioushouseholddecisionswasfrequentlymentioned intheliterature,weusedaninstrumentalvariableapproachtoaccountfortheselectivitybias. WhilearesearcherlivedthroughanagriculturalseasoninNepal,awiderangeofsocialand economicfeaturesofthesociety,suchasresourceuseandpropertyrightswereclarified providingthesocial,institutional,andenvironmentalframeworkforthestudy.theresults sectiondiscussestheimpactofmigrationandremittanceonthenumberofsoilandwater conservationmethodsadoptedandweconcludebysummarizingtheimplicationsandmaking policysuggestions. Data WithfundingfromUSAIDandthecooperationoftheInternationalMaizeandWheat ImprovementCenter(CYMMYT,aresearcherlivedinNepalduring(Jan[March2013tocollect cross[sectionaldatafromrepresentativeruralhouseholds.chitwan,adistrictinthesouth[ centralregionofthecountry,wasselectedbasedonthesampleofthepopulationparticipating inmigrationandthelevelofagricultureproduction itisconsideredoneofthemost agriculturaldevelopeddistrictsinnepal.aquestionnairewasusedoveratwo[monthperiod, andseveralinformalinterviewswereconductedaftertoclarifyresourceuseandproperty rights.thequestionnairewasadoptedfromtwopreviousstudies:oneconductedbythe UniversityofGuadalajaraandPrincetonUniversityandtheotherconductedbytheUniversity ofmichiganinnepal.thesurveywasdesignedtocollectbothqualitativeandquantitativedata, 7 Leavinglandfallowisveryunlikelyinourstudyaread,asitisfacingsevereadeclineinpercapitaavailabilityof agriculturalland,resultinginalarminglyhighlandprices(masseyetal

41 anditwastestedduringafocusgroupandmodifiedforappropriatecontent.itcaptured informationaboutindividualswhowerepresentandthoseindividualswhowerenotpresent duetomigration. Thestratifiedrandomsampleincludedsmall,medium,andlargesizedlandholders selectedfromsevenvillagedevelopmentcommittees(vdcineasternchitwan:bachhauli, Birendranagar,Chainpur,Jutpani,Kathar,Padampur,andPiple.While396householdswere surveyed,manydidnotmakedecisionsaboutagriculturalproductionandsoilandwater conservationmethods(theyleasedoutalltheirlandorfeltuncomfortablerevealing informationaboutcaste,ademographicvariablethatresearchershavesuggestedinsome measureexplainsthechoiceoflivelihoodstrategyinnepal(wagle2010;masseyetal.2010, Williams2009.Restrictingthissampletothosewhomadeagriculturaldecisionsin2012and answeredinformationregardingcasteyieldsasampleof338.thedatasetisusefulinthatit notonlycontainsfamilyprofile:education,health,nutrition,income,assets,andexpenditures, butitalsoincludesthehousehold sagriculturalactivities,suchasinputuseandagricultural output,andoff[farmbusinessactivities.thedatasetalsocontainsanumberofhouseholdand communitylevelvariables consistentwithothercross[sectionaldatausedintheliterature (Quinn2009;GrigorianandMelkonyan2011. Thedependentvariableofinterestisthenumberofwaterandsoilconservation methodsthathouseholdiutilized( in2012.itisadiscreetvariablerangingfrom0to14,with theaveragenumberofconservationmethodsusedbyhouseholdsinchitwanbeing5.a discretevariableisconsistentwithpreviousresearchthatconsiderstheintensityofadoption; sometechnologiesand/ormethodsarepresentedinapackagewithseveralcomponents,which canbeadoptedtogetherorindependently(federetal.1985.someofthesustainable agriculturalpracticesincludedinthequestionnaireweretakenfromareportpublishedbythe NationalAgriculturalResearchInstitute(NARIandtheNepalAgriculturalResearchCouncil (NARC(seeManandharetal.2009,suggestingtheyhadbeenintroducedinNepal.Thesoil andwaterconservationmethodsincludedinthesurveywerecroprotation,minimumtillage, rainwaterharvestingsystem,wastewaterreuse,plantingtreesandshrubsaroundthefarmland, anduseofstrawtocovertheplotafterlandpreparation,amongothers. Therehavebeenseveralstudiessuggestingthatselectivityissuesarepresentwhen modelingmigrationandhouseholdinvestments,includingconservationdecisions(curran2002; Rozelleetal.1999;Quinn2009;GrigorianandMelkonyan2011;BasankandChezum2009; AdamsandPage2005;Carlettoetal.2011.Weuseaninstrumentalvariableapproachto accountfortheselectivitybias,andwhilethetestforendogeneityisdiscussedintheresults section,wepresenttwovariableswhicharebothexplanatoryanddependentvariablesinthe analysis:thenumberofindividuals(overtheageof12fromhouseholdiwholeftthehomein thepreviousyear 8 ( andtheaverageamountofmonthlyremittancesinus$receivedbythe householdinthepreviousyear(.wedidnotuseadichotomousvariableforwhether remittancewasusedtofinancesoilandwaterconservation(quinn2009duetofungibility reasons remittancescanbeusedforvariouspurposes. 8 Theageof12wasselectedtocaptureindividualswhowouldhaveparticipatedinhouseholdproductionhadthey livedathome. 30

42 Theexplanatoryvariablesusedinthepaperconsistsofvectors,,and,with variablesin beingthesocio[economiccharacteristicsofthehousehold,includingageof householdhead,yearsofeducationofhouseholdhead,income,totalsizeofcultivatedfarm plotsoperatedbythehousehold,theamountofownedlandthatwasleasedout,andthe numberofagriculturalinfrastructureaccessedlastyear.thevector alsoincludes dichotomousvariablesindicatingwhetheragricultureisthemainsourceofincome,iftheland isunproductive,thewaterqualityisbad,andifthehouseholdexperiencedlaborscarcityinthe previousyear.thevectors,and areinstrumentvariablesthatareusedtoidentifyboth and,butarenotcorrelatedwiththenumberofsoilandwaterconservationmethods adopted.theinstrumentvariablesexplainboth and withoutexplaining.the variablesin arethenumberofmigrationexperiencesandthenumberofrooms(housing sizeandthevariablesin arethenumberofhousesownedbyhouseholdi0andwhetheror notremittanceswasusedtofinanceland.thedescriptivestatisticsofthevariablesusedinthe studyareintable4.1. Areviewofconservationagriculturestudiesrevealedthattherearefewifany influencesonadoptionthatapplyuniversally(specificfactorsarehighlycontextualandvaryby location,butthereareexpectedsignsforthevariablesin.theaverageageofahousehold headinchitwanis52.7,whichmaybeconsideredelderlyindevelopingcountries;forexample, astudyofhorticulturalproductioninnigeriasuggestedthat40yearsofagewasconsideredan olderfarmer(okaforandfabiyi2011.however,weexpectagetopositivelyimpactthe numberofconservationmethodsused;agemayindicatetheleveloffarmingexperience, knowledgeofnaturalresources,andlevelofparticipation thereisevidencethatyoungpeople innepalarenotreallyinterestedinworkinginagriculture(adefila2012;gartaulaetal.2012; ThiemeandWyss2005. Weexpectincome,whetheragricultureisthemainsourceofincome,hectaresofland cultivated,thenumberofagriculturalinfrastructure(suchasextensionandirrigationaccessed, badwaterquality,andlowlevelsoflandproductivitytohaveapositiveimpactonthenumber ofsoilandwaterconservationmethodsadopted.wealthierandlargerlandownersmayhave moreresourcesandtheincentivestopaythecostsassociatedwithconservation(firdausand Ahmad2010;Ebojeietal.2012;Federetal.1985.Theruralpoorhavelesssecureaccessto income,creditandtimeconstraints theyareoftenunableandunwillingtoinvestinnatural resourcemanagement(frostetal.2007,ahmedandrayhan2012,mgbenkaetal.2012.some conservationmethodsalsorequirecomplimentaryinputsthatareacquiredthroughextension, market,andotheragriculturalinfrastructures(firdausandahmad2010,mgbenkaetal.2012, AgrawalandGupta2005.Moreover,pooragriculturalinputshavebeenamongthemain drivingforcesforquickadoptionofno[tillageagricultureinotherregionsoftheworld(fao Somestudiesfoundthateducationhasapositiveeffect(Mgbenkaetal.2012;Firdaus andahmad2010;bansakandchezum2009;agrawalandgupta2005,butitispossiblethat increasededucationlevelsmayhaveanegativeimpact(adeolaetal.2011.itmaybeeasierfor moreeducatedindividualstousemodernizingimprovementsoritmayleadtooff[farmincome. Weexpecttheamountofownedlandleasedouttohaveanegativeeffect;asmoreagricultural landsaregivenovertothelandrentalmarketinnepal,whichissharecropping,therewillbe lessincentivestoconserve(ahmedandrayhan2012,maharjanetal.2012,gartaulaetal. 31

43 2012.Laborintensiveconservationmethodsmayalsobeaffectedbytheavailabilityoflabor. MostofthelandownersinChitwanproducerice,whichstillremainsalaborintensiveactivity anditshouldbeexpectedthatwaterandsoilconservationmethodswouldbeaswell.labor scarcityhasnegativelyimpactedadoptioninotherstudies(federetal.1985,acemoglu2010. Table4.1.ConservationTechnology,descriptiveStatisticsbyhousehold,Chitwan2013 Variable Description Mean Dependent Variables Standard Deviation Migrants ofhouseholdmemberswholivedaway Remittances averagemonthlyremittancesreceivedinus$ Conservation ofagriculturalconservationmethodsadopted Exogenous Variables Income averagemonthlyincomeminusremittancesinus$ MainSource agricultureismainsourceofincome(0/ Age ageofhouseholdhead Caste HighCaste(baseLowCaste(2Mongolian(3 Indigenous( Education yearsofeducationofhouseholdhead MaleEducation yearsofeducationofhouseholdmales FemaleEducation yearsofeducationofhouseholdfemales HouseholdSize ofhouseholdmembers Dependents ofhouseholdmembersunder12andover OwnedLand totalofhectaresownedbyhousehold CultivatedLand totalofhectarescultivatedbyhousehold totalofhectaresownedbyhouseholdandleased out LeasedOut Infrastructure ofagriculturalinfrastructureused ProductionQuality landproductivityisbad(0/ WaterQuality waterqualityisbad(0/ SoilQuality soilqualityisbad(0/ LaborScarcity householdexperiencedlaborscarcity(0/ Instrument Variables Experiences ofmigrationexperiencesinhousehold Rooms ofrooms Houses numberofhousesownedbyhousehold Financed remittancefinancedlandpurchase(0/

44 Methodology Acommonprobleminestimatinganyimpactofmigrationinhouseholdbehavioristhat unobservedhouseholdcharacteristicsmaybecorrelatedwithboththeoutcomeofinterestand thelikelihoodofmigration.similarly,remittancesshouldnotbeviewedasexogenous; householdswithmoremigrantsshouldreceivemoreremittances.migrantfamiliesarealsonot randomlyselectedamongaparticularcommunity;selectionissuescanposeidentification problems.whileoneequationassumesallvariablesontherighthandsideareexogenous,and atwo[stageleastsquares(2slstechniqueaddressestheproblem,weareunabletostudyboth migrationandremittancetogether.weappliedathree[stageleastsquares(3slstechniqueto estimatemigration,remittances,andadoptionofconservationtechnologysimultaneously.the conceptualmodelisadoptedfromrozelle(etal.1999,quinn(2009,grigorianandmelkonyan (2011,andBansakandChezum(2009. First,considerthatthehouseholdchoosesthenumberofmigrantstosendout(internal andinternational: = (1 where isthevectorofhouseholdcharacteristics,whichincludeshouseholddemographics, humancapitalandphysicalcapitalvariables,and isthevectorofinstrumentsusedto properlyidentifym,andaretheerrorterms.theindividualhouseholdisdenotedbyi=1,2,3,,n. Giventhenumberofmigrants,theywillmakethedecisionontheamounttoremit,R.It isdeterminedas: = ( where isthevectorofhouseholdcharacteristics, isthepredictedvaluefromthefirst equation,and isthevectorofinstrumentstoproperlyidentifyr.0 0 Finally,thehouseholdwillchoosethenumberofsoilandwaterconservationmethods toadopt:0 = (30 wherethepredictedvalues and 0fromthefirsttwoequationsareincludedinthe investmentequation.so,thenumberofindividualsfromhousehold0iwholivedawayinthe previousyear andaveragemonthlyremittancesreceived,aretwovariablesthatareboth explanatoryvariablesanddependentvariables.thethree[stageapproachequations: = (1 = (2 = (30 33

45 Results Testing0for0Endogeneity0and0Instrument0Validity00 0 TheresultsfromtheHausman[Wutestforendogeneitysupportthechoicetousean instrumentalvariableapproachinsteadofols.thenullhypothesisofexogeneityofmigration andremittancesintheconservationregressioncanberejectedatthe90%confidencelevel;the t[statisticontheindividualresidualvariablesare[1.69and0.23,respectively.thet[statisticon theremittanceresidualsissmall,butremittancesshouldnotbeviewedasexogenous householdswithmoremigrantsshouldreceivemoreremittances.besides,thereismorethan onevariablebeingtestedforendogeneity,turningtheendogenitytestintoanf[testofjoint significance(hill421.otherpapershavedemonstratedthedifferenceintheprobitandthe instrumentalvariableapproach(seequinn2009,andmanyothershaveconcludedthatan unobservablefactorinfluencingthepropensitytomigrateandremitiscorrelatedwiththe regressionerrorterms,ifmodelinghouseholdinvestmentdecisionslikeconservation,thereby makingtheprobitorolsestimatorsbiased. Weformallytesttheinstrumentsforvalidity.Avalidinstrumentmustsignificantly impact and andbeuncorrelatedwiththeconservationregressionerrorterm.thetestsof jointsignificanceoftheinstrumentsinthemigrationandremittanceequationsyieldanf[test statisticof21.21and10.06,respectively.torejectthehypothesisthattheinstrumentsare weakorthatthetruevalueoftheinstrumentsarezero,theruleofthumbisthatthef[test statisticshouldbegreaterthan10(hill414.theinstrumentspassthefirstcondition.weuse thesargan[hansentesttodeterminewhethertheinstrumentsareuncorrelatedwiththeerror term,andthattheinstrumentsarecorrectlyexcludedfromtheestimatedequation.thenull hypothesisisthattheinstrumentsarevalid,andwefailtorejectthenullforthevariable vectors,and withachi[squarevalueof0.033and0.014,resultinginp[valuesof0.86and 0.91,respectively. Summary0of0Results First0and0Second0Stage0 0 Theestimationresultswithrobuststandarderrorsforequations(1and(2are presentedintable4.2.aspredicted,thenumberofmigrationexperiencesencourages migration.thecoefficientonexperienceispositiveandhighlysignificant.wefindthatitisthe factorthatencouragesmigrationthemost.thisisconsistentwiththeliterature Nepalhasa cultureofmigration,thiemeandwyss(2005suggestedithasbecome institutionalized.the associationwithamigrantgreatlyincreasestheoddsofout[migrationduetoincreased informationflow,assistancewithemploymentopportunitiesandhelpwithaccommodationsin otherstudies(thiemeandwyss2005,wagle2010,carlettoetal.2011.wealsofoundthat householdswithmoredependents(childrenandelderlydecreasethenumberofhousehold membersmigrating,whilehouseholdsizepositivelyimpactmigration. Surprisingly,familieswithlargerpropertiesarenotsendingoutmoremigrants.Land ownershipinnepalisassociatedwithsocialstatusandwealth,andconcentrationofland holdingstoactascollateral,wouldmeanthesehouseholdshavebetteraccesstoinstitutional credit,whichweexpectedwouldputtheminabetterpositiontosendoutmigrants.the 34

46 negativeimpactofownedlandmayindicatethatlargerlandownershaveaccesstosufficient income[generatingsourcesinchitwan,anddonotneedtosendmoremigrantsforeconomic opportunitiesoutsidethedistrict.landownershipcanbeaproxyforwealth,whichmeans householdswithalotofwealthdonothavetheincentivetoleave(griogorianetal Theremaybeotherreasonsaswell.Considerthatlargerlandownersmayneedmore householdlabortocultivateland,especiallyifthecultureofmigrationcreateslaborscarcity duringpeakagriculturalseasons.orthenegativesignreflectsthehandfulloflandownersinthe samplewhoownedverylargeplots.forexample,wefoundonehouseholdownedover60 hectaresofland(averageis1.10hectares,butwasremovedfromthesampleasanoutlier.the coefficientonownedlandisnotverylargeandisonlysignificantatthe90%confidencelevel. Table4.2.ConservationTechnology,resultsofthefirstandsecondstageregressions Migration Remittances Robust Robust Standard Standard Coefficient Error Coefficient Error MaleEducation FemaleEducation [ * 2.02 Income [ HouseholdSize 0.41 *** 0.05 [91.94 *** Dependents [0.17 *** *** OwnedLand [0.05 *** Caste Low [0.39 * *** Mongolian [ ** Tharu(Indigenous [0.42 ** WaterQuality [0.37 *** SoilQuality [0.57 * 0.34 MigrationExperience 0.42 *** 0.09 ofrooms MHAT *** Houses ** Financed * NumberofObservations Chi[Squared Note: ***, **,and * denotesignificanceat1%,5%,and10%respectively. R[Squareisnotapplicablein3SLS Coupledwithourfindingsoftheethniccompositionofhouseholdssendingmore migrants,therecouldbeamoreprosaicreasonwhylandholdingsizeinchitwandoesnotactas 35

47 collateralformigration.otherstudiesfoundthatnotallhouseholdsinnepalhavesufficient income[generatingsources;differentialaccesstolandispresent,withthemajorityowning smallormarginalsizedplots(wagle2010.wealsofoundthatsomehouseholdsdonotown land,butrentthelandtheycultivate.however,weproposethatwhilemarginalizedandlower castehouseholdshavegenerallyfairedwithsmallerlandholdingsinotherpartsofnepal (resultinginlimitedmobility,thereareculturalnormsthataredrivingthedecision[making practicesofthetharuorindigenouspeoplethatshouldbeaccountedforinthemigration analysis.theyhavelargerlandholdings,butseemtobemoreattachedtotheir ancient landholdingsthanthepeoplewhomigratedtochitwaninthepastfiftyyears.ourstudyfinds thattheysendfewermigrantsthanhighercastehouseholds.theindigenouspopulationwould notmigrateeveniftheyhadthecollateraltodoso.however,thisexcludesthelowercaste householdsthataresendingoutfewermigrants;theydohavesmallerlandholdingsinchitwan. Finally,itappearsthatthefactorsthatnegativelyimpactthenumberofmigrantsthe most,aftertheethniccompositionofthehousehold,arewaterandsoilquality.weexpecteda positiveimpactforboththesevariables;poorlandandinputqualitysuggestsalowerreturnto agriculture,whichshouldencouragemigrationoutofchitwan,asithasdoneinthehillyregions ofnepal(maharjanetal.2012.massey(etal.2010alsofoundthatdegradationand environmentalhazardswouldpushmigrantsoutofchitwan.otherpushfactorsthathave encouragemigrationintheliteratureinclude:higherunemployment,lowliteracyrates, corruption,politicalinstability,lackofinfrastructure,andpooraccesstocredit,insurance marketsandgovernmentservices.thenegativeimpactofpoorqualityagriculturalinputson thenumberofmigrantscouldbeoneoftwothings:poorqualityinputsreducetheabilityof householdstomeetthecostsofmigrationoritproducesmoreuncertaintyaboutleaving householdmembersbehind. Theremittanceequationalsoprovidessomerevealinginsights.Asexpected,the coefficientonmigrationispositiveandhighlysignificant.thenumberofhousesownedbythe householdandwhetherremittancesfinancedpreviouslandpurchasesencouragesremittance, providingstrongsupportthatremittancesarereceivedbymoreprivilegedfamilies.thosewho ownmorehousesandlandplotsareinabetterpositiontoreceivemoreremittances.in addition,transferstohouseholdswithmoreeducatedfemalesanddependentsarehigherthan thosewithlowerfemaleeducationlevelsandfewerdependents.thiemeandwyss(2005and BasankandChezum(2009foundthatmigrantremittancesarebeingsiphonedtoward children seducation.however,smallerhouseholdsreceivemoreremittancesthanlarger households.itmaybethatlargerhouseholdsareperceivedtobemorefinanciallysecure becausemorehouseholdlaborisavailabletoworkonthefamilyland.largerhouseholdsmay alsoappeartobelessvulnerablebecausetheycansharerisks.intermsoftheethnicity compositionofthehousehold,itisinterestingtonotethatwhilelowercastefamiliessend fewermigrantsthanhighercastefamilies,theysendbacklargermonthlysumsofremittances. Thiscouldsuggestthathighercastemigrantsearnlessabroad(andtherefore,remitless,they arelesslikelytoreturn(hencenoneedtoremitasmuch,ortheyaremigratingforlonger periodsoftime.highercastemigrantsmaybemigratingwiththeirimmediatefamily,and previousstudieshaveshownthattheyaremorelikelytosendsmallerremittances(yang2011. Weshouldalsoconsiderthathighercastefamiliesmaynotbesendingremittancesonamonth tomonthbasis,butinalargesumafteralongerstay.studieshavefoundthatmigrantshavean 36

48 interestinhowtheremittancemoneyisused,preferringthatitisinvestedinmoresubstantial needs,liketheconstructionofanewhouse(yang2011,thiemeandwyss2005.itshouldalso benotedthatremittanceindicatorsmaybesubjecttomeasurementerror somehouseholds mayunderstatetheirtrueincome,andhighercastehouseholdswouldhavethegreater incentivetodoso.toevadetaxes,forexample(grigorianandmelkonyan2011. Summary0of0Results Third0Stage0 0 Theestimationresultsforequation(3,usingrobuststandarderrors,arepresentedin Table4.3.Theresultsdonotsupporttheriskhypothesis,butareconsistentwiththecredit hypothesis.thecoefficientonremittanceisinsignificant,butitispositive(supportingthecredit hypothesis.furthermore,householdswithmoreincome(excludingremittancearechoosing nottoinvestinmorewaterandsoilconservationmethods.thecoefficientissmalland negligible,butitisnegative.itappearsthatverylittlecapital(bothincomeandremittanceis beingsyphonedtowardsustainableagriculturaldevelopment.thiseithersupportsthetrend thathouseholdsinchitwanaremovingawayfromagricultureproduction,haphazardly adoptingtechnologieswithoutconsideringnaturalresourceconservation(tookoutagricultural loanstodoso,orconservationmethodsaremorelaborintensivethancapitalintensiveinthe studyarea. Table4.3.ConservationTechnology,resultsofthethirdstageregression Technology Coefficient RobustStandardError Age Education [ Income [ * 0.00 MainSource ** 0.31 Cultivated LeasedOut [ LaborScarcity WaterQuality * 0.41 ProductiveQuality [ ** 1.06 Infrastructure *** 0.08 MHAT [ * 0.18 RHAT C ** 0.87 NumberofObservations 338 Chi[Squared Note: ***, **,and * denotesignificanceat1%,5%,and10%respectively. R[Squareisnotapplicablein3SLS 37

49 Thelattermakessensewhenconsideringthefollowing:householdswithagricultureas themainsourceofincomeadoptsignificantlymoreconservationtechnologiesthanthosethat arenotdependedonagricultureproduction,butiftheyexperiencedthelossoffamilylabor throughmigration,theyweredisinclinedtopracticesustainableagriculture.themigrantsare notinsuringagainstcropfailureorlossofproductivity;themagnitudeonmigrationislarge.the waterqualitythatnegativelyimpactedmigrationinequation(1encouragessoilandwater conservationinthethirdregression(bykeepingthepotentialmigrantathome.thenumberof agriculturalinfrastructuresaccessedalsohasapositiveimpactonthenumberofconservation methodsadopted,allsuggestingthatifhouseholdsarestillinterestedinagricultural production,eitherforpersonalconsumptionorforcommercialreasons,andnotmigratingin largenumbers,aremorelikelytoconservenaturalresources. Thefactorthatdiscouragesconservationthemostisunproductiveland.Thecoefficientonland productivityisnegativeandsignificant.ironically,lowproductivityinnepal,asinother countries,resultsfrominappropriatelanduseandpoorlandmanagementpractices affecting thetimespentonagriculture,thequalityandquantityofwateravailable,andthesoilnutrients thatareavailableforproduction(ahmedandrayhan2012,alametal.2008,firdausand Ahmad2010,Frostetal.2007.Degradationofnaturalresourcesisalsoseenasarootcausefor stagnatingagriculturalproductivity Nepalissmall,landlocked,andallNepalihouseholds directlyorindirectlydependonnaturalresources(frostetal.2007,kolawoleetal.2012.their conventionalfarmingpractices,likeshorterperiodsoffallowland(preventingthesoilfrom naturallyregeneratingitselfaredestroyingthesoil ssupportiveabilityandresultinginlow agriculturaloutputs.thehouseholdsexperiencinglowagriculturalproductivityshouldbe adoptingthemostconservationmethodstoincreasecropyieldswhilesimultaneously supportingtheproductivecapacityofitssoilandwaterresources,butwefindtheopposite realityinchitwan. Conclusion ThepaperusesdatafromChitwan,Nepaltotesttheimplicationsofmigrationand remittanceflowsonthebehaviorofreceivinghouseholds.becausetheissueofendogeneityin estimatingtheimpactofmigrationandremittanceonvarioushouseholddecisionswas frequentlymentionedintheliterature(rozelleetal.1999;quinn2009;grigorianand Melkonyan2011;BasankandChezum2009;AdamsandPage2005;Carlettoetal.2011,we usedaninstrumentalvariableapproachtoaccountfortheselectivitybias.oneequation assumesallvariablesontherighthandsideareexogenous,andwhileatwo[stageleastsquares (2SLStechniqueisappropriateforaddressingtheproblemofendogeneity,wewereunableto studymigrationandremittancetogether.wethereforeappliedathree[stageleastsquares (3SLStechniquetoestimatemigrationandremittancessimultaneously. Wefoundthatremittancehasnoimpactonthenumberofsoilandwaterconservation methodsadopted,butmigrationhasasignificantandnegativeone.themoremigrantsinthe householddonotnecessarilytranslateintomoreremittancesbeingsiphonedawaytoward conservation.policymakersinterestedinincreasingthenumberofconservationmethods adoptedneedtotargethouseholdssendingoutthemostmigrants.withgrowingnumbersof householdsinchitwanallocatingasignificantportionoftheirlaborforcetomigration,labor 38

50 scarcityduringpeakagriculturalseasonsmaybecomehazardousforsustainableagricultural development.fortunately,thereexistsacultivationpracticethatwouldtacklehead[onthe povertytrapofpoorfarmassetsandisnotlabororcapitalintensive,somigranthouseholds couldchosetoadoptthematagreaterrateduetotheminimallaborrequirements(fao2008, FAO2012.ConservationAgriculture(CAisasustainableandanenvironmentallyfriendly managementsystemthatincludespracticessuchasminimumtillage,improvedcropvarieties, intercropping,andtheuseofcovercrops(laiaetal CAhasthepotentialtomitigatethedepletionofsoilnutrients,increasecropyields,and conservesoilandwater(fao2008,fao2012.italsomakesitpossibletoinsertahighvalue vegetablecropintheagriculturalsystembydecreasingturnaroundtimes diversificationof agricultureinfavorofmorecompetitiveandhigh[valuecommoditiesmayhelpovercomethe deterioratingconditionofsmallandmarginalfarmers;thesystemsmaintaintheirstaplebase whilegeneratingadditionalincome(nepalfy.cahasbeenintroducedinchitwan,butitisnot practicedpermanently0becausethefarmersstillploughthelandoruseintensivetillage practicesforrice,inariceandwheat[basedagriculturalsystem;ricefarmingispartofthe cultureandmanysuchfarmingsystemsaresubjecttoculturalandreligioushabits,butrainfed smallholderagricultureinthiscountry,withsignificantloss[laboreffectsfromout[migration, maybenefitfromthewidespreaduseofthissoilandwaterconservationmethod(fao2008, FAO2012,Maharjanetal Optimistically,Nepal sfeedthefutureprogramisutilizingcaaspartoftheircountry investmentplan.whilethelackofproperherbicidesinnepalmayhinderthewidespread adoptionofca,povertyandmindset factorsacceleratingenvironmentaldegradation,will requiremorethanavailableinputs,buttrainingandeducationamongmorevulnerable farmers inhierarchalsocieties,rulingeliteshavebetteraccesstovariouskindsof improvements,andtechnicalinterventionswouldnotgraduallyspreadtothemore disadvantagedsocietymembersunlessmarginalizedgroupsarespecificallytargeted(fao2008, NepalFY,Adefila2012,Mendola2007,Frostetal.2007.Becausenotallhouseholdsareableto affordtherelatedexpensesofmigration thereareinherentdisadvantagesfacinglower[caste andethnicgroups CAmustbepromotedamonghighercastefamiliesaswell(householdswith themostmigrants. Asourfindingsarerelatedtostudiesfromotherpartsoftheworld,wewillgainabetter understandingoftheimpactofmigrationandremittanceonthesustainableuseofnatural resources,especiallyoftheruralpoorwhoarevulnerabletoenvironmentalhazards.prieur (2009saidthat, economicpovertyresultsfromecologicalpoverty. Thedeterminantsof adoptingresource[conservingtechnologiescanfacilitatebetterpolicydesign,andwith adequatepoliciestoencourageca,agriculturaldevelopmentcouldconvergewithnatural resourceconservation,allowingmigrationandremittancetobeacatalystforsustainable agriculturaldevelopmentinruralnepal improvingmanyhousehold sresilienceto vulnerabilitieslikefoodinsecurity. 39

51 CHAPTER5 REMMITANCEANDIMPACTSONSCHOOLINGOFCHILDRENINNEPAL Introduction ManypeopleinNepallacktheappropriateeducationandsocialcapitaltoaccessgood localjobs.becauseofunderemployment,unemploymentandanincreasedwavefavoring foreignemployment,agrowingnumberofhouseholdsarechoosingtoparticipatein internationalordomestic(fromruraltourbanmigration(thiemeandwyss2005,wagle2010, Masseyetal.2010,Williams2009,Yang2011.Notallhouseholdsareabletoaffordtherelated expenses,especiallytointernationaldestinations suggestingthathouseholdswithaccessto migration,asalivelihoodstrategy,areinabetterpositiontoreceiveremittances,theportionof themigrant searningssentbacktothefamilyremainingbehind(wagle2010. Remittance[recipientsusuallydonothaveanobligationtorepay,and atthe household[level,theseremittancesarelikelytohaveimportantincomeeffects,aswellas possiblyrelaxbindingliquidity,credit,orinsuranceconstraints (Carlettoetal.2011.Theextra incomecanbeusedforseveralpurposes:itcanfacilitateinvestmentoraffordruralhouseholds themeansofsecuringdailyfoodrequirementsandescapingpoverty(mendola2007,yang 2011,Frostetal.2007,Carlettoetal.2011,ThiemeandWyss2005.Remittancesalready amountto25.83%ofnepal sgdp,soifmigrationistofostersustainabledevelopment,this sourceofincomehastoeventuallybechanneledtowardproductiveinvestments(nepalbastra Bank2014,ThiemeandWyss2005,Yang2011.Oneoftheseproductiveinvestmentoutlets maybechildren seducation,contributingtothehumancapitalstockinthiscountry. Ifhouseholdsparticipatinginmigrationinvestinchildren seducationbecauseof relaxingbudgetconstraintsand/orreducingchildlaborthroughtheincreaseinincome(indirect effect,thenremittancesmayhaveapositiveimpactonhumancapitalformation,improving thehouseholds opportunitiesforoff[farmincome(williams2009,bansakandchezum2009, Acosta2011,Amuedo[Dorantesetal.2010.Theproblemariseswhenthereisuncertainty aroundtheimpactoflaborlossonthechildrenleftbehind(thiemeandwyss2005,bansakand Chezum2009,Acosta2011.Out[migrationmayrequirechildrentotakeupextrahousehold dutiestocompensateforthelossofproductivelabororcreatedisincentivestostudyincaseof migrantchildrenwithlessparentaloversight(bansakandchezum2009,acosta2011,amuedo[ Dorantesetal.2010,GrigorianandMelkonyan2011. TofurthercomplicatethemigrationandeducationanalysisinNepal,therearesocial andinstitutionalfeaturesofthenepalesecontextthatshouldalsobeconsideredinthispoverty alleviationscheme unregulatedmigrationmayhavedeleteriousconsequencesonthelong% term0inequalityrate.whileresearchconfirmsthathouseholdsareusingalargeportionof remittancestoeducatetheirchildren(bansakandchezum2009,thiemeandwyss2005,it remainsunclearwhethertheincreaseinaverageeducationlevelsrepresenttherealityfor everyethnicgroup 9 ;aswagle(2010hassuggestedinhisstudyofpovertyreductioninnepal, 9Thereare100differentcastesandethnicgroupsinNepal,andresearchershaveoftensubdividedtheminto fivetosevencategoriesinordertosimplifyanalysis(williams2009,wagle2010,masseyetal

52 groupaveragesdonotfullycaptureeveryone seconomicexperiences. Soanissuethathas beennotablyoverlookedisthedifferentialconsequencesthatmigrationofdifferentpopulation groupsmaygenerate. TheHinducastesysteminthiscountryalreadyreservesthewell[paidandrespectable jobsforhighercastepeople,andwhilemanyinequality[reducinginitiativesareunderway discriminationisstilldeeprootedinsociety(thiemeandwyss2005,wagle2010.evenwhen lower[castehouseholdsfindthecollateraltofinancemigrationorsecureanon[agriculturaljob, itisnotcertainthattheywillinvestintheirchildren seducation(wagle2010,maharjanetal. 2012,NepalFY.Theimportanceofhumancapitalinvestmentsforeconomicdevelopment cannotbeoverstated.fewwouldconsidercurrenteducationlevelsinnepalsufficientto sustaineconomicgrowth. Formidably,migrationmayleadtoagrowingdependenceonremittanceincome,with mostofitbeingusedforconsumptionandverylittlebeingusedforproductiveinvestments;or worse,migrantremittancescouldleadtofurtherinequalityineducationaloutcomes,possibly preservingthecaste[baseddiscriminationpresentincertainpartsofthecountry(laiaetal. 2012,ThiemeandWyss2005,Masseyetal.2010,Wagle2010.Theroleofremittances, especiallyfromundocumentedmigrants, 10 remainsafruitfulfieldofresearch,andtodate, therehasbeenlittlepublishedonitsimpactonhumancapitalformationinthechitwanvalley, oneofthemostagriculturallydevelopedregionsofnepal. Thefirstschoolintheareawassetupin1954,andsincethe1950stherehasbeena steadyproliferationinthenumberofschoolsestablishedinchitwan,fromonlytenin1960,to over100intheearly1990s.publicschoolingwasformallyinstitutednationwidein1951,andis comprisedofprimaryschools,educatingchildrenupto5 th grade,lowersecondaryschools comprising6 th and7 th grade,uppersecondaryschools,completingupto10 th grade,andthe optionofattendingtwoadditionalyearsofhighersecondaryschool,whichincludes11 th and 12 th grades.bythemid[1990s,100%ofchildreninthechitwanvalley,agesfiveandsix,had attendedschoolforatleastonedayandmorethanhalfattendedatleastthreeyearsofschool (Williams2009. Becausethemagnitudeandintensityoffactorsleadingtohouseholdinvestmentshave variedfromoneplacetoanotherbasedontheagro[ecological,socio[economicand institutionalsettings,thismicro[levelstudyaimstocontributetothebodyofliteraturefocusing onresourcelimitedcountriesinasia.ourstudyhelpsenhancethedevelopmentcommunity s understandingofhownepalihouseholds decision[makingprocessandtheiruseofremittance incomeimpactchildren seducation.educationalattainmentpromotespositivesocialchangein individualsandcommunity,soprovidingforanoverlyoptimisticviewofout[migrationfailsto provideanappropriateframeworkforpovertyalleviationprograms. Therestofthepaperproceedsasfollows.Contextanddatashowthemainmigration trendsinthecross[sectionaldatawecollectedinchitwanin2013,thesampleandvariables usedinthisstudy.themethodologysectiondiscussesthemodelandtheestimation 10 NepalesehavealonghistoryofseekingemploymentinIndia,whichisnowfacilitatedbytheTreatyofPeaceand Friendshipof1950(openborder,anditremainsthedestinationofchoiceformostofmigranthouseholdsinNepal (ThiemeandWyss

53 procedure becausetheendogeneityissuewasfrequentlymentionedintheliteraturewhen estimatingtheimpactofmigrationandremittanceonvarioushouseholddecisions,weusedan instrumentalvariableapproachtoaccountfortheproblem.theresultssectiondiscussesthe impactofmigrationandremittanceontheeducationexpenditureofschoolagehousehold membersandweconcludebysummarizingtheimplicationsandmakingpolicysuggestions. ContextandData Thisstudyispartofacollaborativeefforttoresearchandpromotesustainablefood systemsinnepal.withtheassistanceoftheinternationalmaizeandwheatimprovement Center(CYMMYTandfundingfromUSAID,wecollectedcross[sectionaldataofrepresentative householdsduring(jan[march2013.theeasternsideofthechitwanvalleywasselectedfor agriculturedominanceandthesampleofthepopulationparticipatinginmigration.the ChitwanValleyisanagriculturallyfertileareainsouth[centralNepal,whichwasoriginally openedupforsettlementthroughextensivedeforestationeffortsbackinthe1950 s the GovernmentofNepal s(gonpopulationdistributionpolicytoovercomefoodshortagesinthe hillyareas.itisoneofthemoreagriculturallyproductivedistrictsinnepal,andunlikethehills, whichcanexperiencegradientsofover30degrees,thesoilisrichandflat,conduciveto growingspecialtycropslikemustardandtraditionalcropslikerice,wheatandmaize(masseyet al.2010,maharjanetal.2012,williams2009. Thequestionnairewasadoptedfromtwopreviousstudies:oneconductedbythe UniversityofGuadalajaraandPrincetonUniversityinMexicoandtheotherconductedbythe UniversityofMichiganinNepal.Thesurveycollectedbothqualitativeandquantitativedata, anditwasinitiallytestedduringafocusgroupandmodifiedforappropriatecontent.the surveycapturesthedetailedactivity,incomeandexpenditureinformationof396households thatwererandomlyselectedandstratifiedbysmall,medium,andlargelandholdingsize.the householdswerelocatedinsevenvillagedevelopmentcommittees(vdcineasternchitwan: Bachhauli,Birendranagar,Chainpur,Jutpani,Kathar,Padampur,andPiple.Thedatasetisuseful inthatitnotonlycontainsfamilyprofile:education,health,nutrition,income,assets,and expenditures,butitalsoincludesthehousehold sagriculturalandoff[farmbusinessactivities.it capturesinformationaboutindividualswhoarepresentandthoseindividualswhoarenot presentbecauseofmigration. Ourinterestistounderstandtheimpactofmigrationonschoolingdifferencesacross ethnicgroups.table5.1showsmeancharacteristicsofhouseholdsinthedata,groupedby caste.therestofthissectionshowsthemaintrendsofmigrationbehaviorforeasternchitwan. Arethereobservabledifferencesinmigrationpatterns,controllingfortheethniccomposition ofthehousehold?table5.2showsthepoissonregressionresults(withrobuststandarderrors forhousehold sdecisionaboutmigration.thedependentvariableisthenumberofindividuals (overtheageof12fromhouseholdiwholeftthehomeinthepreviousyear. 11 Thenumberofmigrationexperiencesareassociatedwithmoremigrants,whichis partiallyexplainedbythecultureofmigrationthiemeandwyss(2005foundinanother 11Theageof12wasselectedtocaptureindividualswhowouldhaveparticipatedinhouseholdproduction hadtheylivedathome. 42

54 district.theassociationwithamigrantgreatlyincreasestheoddsofout[migrationdueto increasedinformationflow,assistancewithemploymentopportunitiesandhelpwith accommodationsinotherstudies(thiemeandwyss2005,wagle2010,carlettoetal Consistentwiththeliterature,householdswithmoredependents(childrenandelderlyare negativelyassociatedwiththenumberofhouseholdmembersmigrating,whilehouseholdsize ispositivelyassociated(grigorianandmelkonyan2011. Table5.1.Householdmeanbycaste,easternChitwan,2013 High Low Not Caste Caste Caste Mong. Tharu Reported TotalMigrants *** 1.76 MonthlyRemittancesin US$ * MonthlyIncomeinUS$ * *** *** AgeofHouseholdHead *** *** MaleEducation ** *** *** FemaleEducation * * *** HouseholdSize Dependents OwnedLand FamilyAgricultural Workers *** 5.00 ** WaterQuality ** 0.18 SoilQuality Experiences *** 1.36 Rooms *** 4.34 *** 4.12 *** 4.73 Houses ** 1.07 *** RemittanceFinancedLand * 0.24 Note: ***, **,and * denotesignificantlydifferentfromhighcasteat1%,5%,and10%respectively. Itappearsthatthefactorsthatnegativelyimpactthenumberofmigrantsthemost, aftertheethniccompositionofthehouseholdiswaterquality.weexpectedapositiveimpact; poorlandandinputqualitysuggestsalowerreturntoagriculture,whichshouldencourage migrationoutofchitwan,asithasdoneinthehillyregionsofnepal(maharjanetal.2012.the negativeimpactofpoorqualityagriculturalinputsonthenumberofmigrantscouldbeoneof twothings:poorqualityinputsreducetheabilityofhouseholdstomeetthecostsofmigration oritproducesmoreuncertaintyaboutleavinghouseholdmembersbehind. Usingthisdata,weconstructasampleof850observations,includingcollegeage householdmembers.wefoundalargenumberofstudentsattendingcollegeanduniversitiesin 43

55 thisdistrict. 12 In0order0to0understand0the0impact0of0migration0on0schooling0differences0across0 ethnic0groups,0we0restricted0the0sample0to07470observations some0households0felt0 uncomfortable0revealing0information0about0caste.wefoundfewinfluencesoneducational outcomesthatapplieduniversallyintheliterature;wepartiallyattributeittothenumberof educationaloutcomes:children slikelihoodofquittingschool,schoolenrollment,yearsof schooling,andpercentageofschool[agechildrenattendingschool. Table5.2.DeterminantsofmigrationatthehouseholdlevelusingPoissonRegression RobustStandard Migration Coefficient Error MaleEducation FemaleEducation [ Income HouseholdSize 0.24 *** 0.04 Dependents [0.14 *** 0.05 OwnedLand [ Caste LowCaste [0.38 * 0.23 Mongolian [ Tharu(Indigenous [0.29 ** 0.13 WaterQuality [0.24 ** 0.14 SoilQuality [ MigrationExperience 0.27 *** 0.06 C [1.11 *** 0.20 NumberofObservations 358 PseudoR[Square 0.25 Note: ***, **,and * denotesignificanceat1%,5%,and10%respectively. Itisunclearwhetherwecanconcludeanythingregardingtheinfluenceofremittance receiptsonactualeducationinvestments,sothedependentvariableofinterestinourstudyis theyearlyexpenditureonachild seducation( in2012.itisavariablerangingfrom0to $8800,withtheaverageyearlyperchildexpenditureoneducationinChitwanbeing$ Usingperstudentexpendituresisconsistentwithpreviousresearchthatconsiderseducational investments(grigorianandmelkonyan2011.wefollowtheliterature(rozelleetal.1999; Quinn2009;GrigorianandMelkonyan2011;BansakandChezum2009;Carlettoetal.2011, Amuedo[Dorantesetal.2010byusinganinstrumentalvariableapproachtoaccountforthe endogeneityproblem.theresultsfromthehausman[wutestforendogeneityarediscussedin 12TherearefivemaininstitutionsinNepalthatprovideaBachelor sdegree(3 5years,aMaster sdegree (another2 3years,andaPh.D.(anadditional3years,buttherearemanywholeavethecountryforhigher studies(williams

56 theresultssection,butthereareanadditionaltwovariableswepresentthatareboth explanatoryanddependentvariablesintheanalysis:thenumberofindividuals(overtheageof 12fromhouseholdiwholeftthehomeinthepreviousyear 13 ( andtheaverageamountof monthlyremittancesinus$receivedbythehouseholdinthepreviousyear(. 14 Theexplanatoryvariablesusedinthepaperconsistsofvectors,,and,with variablesin beingthesocio[economiccharacteristicsoftheschool[agedmemberand household,suchasage,totalyearsofeducationforhouseholdmalesandfemales,household size,thenumberofdependents,proportionofmalesinthehousehold,monthlyincome,and totalsizeofownedlandinhectares.thevector alsoincludesdichotomousvariables indicatingthegenderandmaritalstatusofthehouseholdmember,andcaste.thevectors, and areinstrumentvariablesthatareusedtoidentifyboth and,butarenotcorrelated withtheyearlyexpenditureonahouseholdmember seducation.theinstrumentvariables explainboth and withoutexplaining.thevariablesin arethenumberofmigration experiencesandthenumberofhouseholdsinthecommunitythatparticipateinmigration, whichwasobtainedfromgon snationalpopulationhousingcensus(2011andthevariables in arethenumbersofhousesownedbyhouseholdi0andwhetherornotremittanceswas usedtofinancelandandhousepurchases.thedescriptivestatisticsofthevariablesusedarein Table5.3. Table5.3.Education,descriptivestatisticsbyhousehold,Chitwan2013 Standard Variable Description Mean Deviation Migrants ofhouseholdmemberswholivedaway Remittances averagemonthlyremittancesreceivedinus$ Education yearlyexpenditureonchild'seducationinus$ Income averagemonthlyincomeminusremittancesinus$ Age ageofschool[agehouseholdmember5to Male school[agehouseholdmemberismale(0/ Married schoolagehouseholdmemberismarried(0/ Caste HighCaste(baseLowCaste(2Mongolian(3 Indigenous( MaleEducation yearsofeducationofallhouseholdmales FemaleEducation yearsofeducationofallhouseholdfemales HouseholdSize ofhouseholdmembers Dependents ofhouseholdmembersunder12andover ProportionofMales proportionofmalesinthehousehold OwnedLand totalofhectaresownedbyhousehold Thereareexpectedsignsforthevariablesin.Themoreeducatedthehousehold (maleandfemaleeducation,themoretheywillinvestineducation,andsincelower[caste 13Theageof12wasselectedtocaptureindividualswhowouldhaveparticipatedinhouseholdproduction hadtheylivedathome. 14 Wedidnotuseadichotomousvariableforwhetherremittancewasusedtofinancechildren seducation (Quinn2009duetofungibilityreasons remittancescanbeusedforvariouspurposes. 45

57 householdshavegenerallyfaredwithlowerlevelsofeducation,weexpectcastetohavea negativeassociationwithschoolinginvestments.agehashadbothanegative(acosta2011 andapositiveassociation(amuedo[dorantesetal.2010withschoolenrollment,butwe expectschoolexpenditurestoincreasewithhigherlevelsofeducation.thesestudiesalso foundthatfemalechildrenweremorelikelytobeenrolledinschoolthanmalechildren; however,bansakandchezum(2009foundtheoppositeinnepal.weexpecthouseholdsin ChitwantoinvestmoreintheirunmarriedandmalehouseholdmembersbecauseNepalisa patriarchalsocietywherefemalechildrenbecomeapartofanotherhouseholdwhilemale childrenremainatthegroom sparentsoncemarried(williams2009. Alongthesamelogic,weexpectthattheexpenditureonaschool[agedmember s educationwillincreaseforhouseholdswithmoremales.householdswithmoremalesaremore financiallysecureasmorehouseholdlaborisavailabletoearncash.theyarealsoless vulnerablebecausetheycanbettersharerisks.weexpecttheexpenditureoneducationto decreasewithincreasinghouseholdsizes(duetofemaleanddependentsandgreaternumbers ofchildrenandelderly.thecongestioneffectisalsofoundinelsalvadorandhaiti(acosta 2011,Amuedo[Dorantesetal.2010.Weexpectincomeandhectaresofownedland(proxyfor householdassettohaveapositiveimpactontheeducationaloutcome.wealthierandlarger landownersmayhavemoreresourcesandtheincentivestopayhighercostsforquality education. Methodology Acommonprobleminestimatinganyimpactofmigrationinhouseholdbehavioristhat unobservedhouseholdcharacteristicsmaybecorrelatedwithboththeoutcomeofinterestand thelikelihoodofmigration.similarly,remittancesshouldnotbeviewedasexogenous; householdswithmoremigrantsshouldreceivemoreremittances.migrantfamiliesarealsonot randomlyselectedamongaparticularcommunity;selectionissuescanposeidentification problems.whileoneequationassumesallvariablesontherighthandsideareexogenous,and atwo[stageleastsquares(2slstechniqueaddressestheproblem,weareunabletostudyboth migrationandremittancetogether.weappliedathree[stageleastsquares(3slstechniqueto estimatemigrationandremittancessimultaneously.theconceptualmodelisadoptedfrom Rozelle(etal.1999,Quinn(2009,GrigorianandMelkonyan(2011,andBansakandChezum (2009. First,considerthatthehouseholdchoosesthenumberofmigrantstosendout(internal andinternational: = (1 where isthevectorofhouseholdcharacteristics,whichincludeshouseholddemographics, humancapitalandphysicalcapitalvariables,and isthevectorofinstrumentsusedto properlyidentifym,andaretheerrorterms.theindividualhouseholdisdenotedbyi=1,2,3,,n. Giventhenumberofmigrants,theywillmakethedecisionontheamounttoremit,R.It isdeterminedas: 46

58 = ( where isthevectorofhouseholdcharacteristics, isthepredictedvaluefromthefirst equation,and isthevectorofinstrumentstoproperlyidentifyr.0 0 Finally,thehouseholdwillchoosetheexpenditureoneachhouseholdmember s education:0 = (30 wherethepredictedvalues and 0fromthefirsttwoequationsareincludedinthe investmentequation.so,thenumberofindividualsfromhousehold0iwholivedawayinthe previousyear andaveragemonthlyremittancesreceived,aretwovariablesthatareboth explanatoryvariablesanddependentvariables.thethree[stageapproachequations: = (1 = (2 = (30 Results Testing0for0Endogeneity0and0Instrument0Validity00 0 Weformallytestforendogeneity,andtheresultsfromtheHausman[Wutestsupport thechoicetouseaninstrumentalvariableapproachinsteadofols.thenullhypothesisof exogeneityofmigrationandremittancesinthetechnologyregressioncanberejectedatthe 95%confidencelevel;thet[statisticontheindividualresidualvariablesare2.64and[1.56, respectively.however,whenthereismorethanonevariablebeingtestedforendogeneity,the testisanf[testofjointsignificance(hillpg.421.wealsotesttheinstrumentsforvalidity.a validinstrumentmustsignificantlyimpact and andbeuncorrelatedwiththeeducation regressionerrorterm.thetestsofjointsignificanceoftheinstrumentsinthemigrationand remittanceequationsyieldanf[teststatisticof46.41and13.04,respectively.torejectthe hypothesisthattheinstrumentsareweakorthatthetruevalueoftheinstrumentsarezero, theruleofthumbisthatthef[teststatisticshouldbegreaterthan10(hillpg.414.the instrumentspassthefirstcondition.weusethesargan[hansentesttodeterminewhetherthe instrumentsareuncorrelatedwiththeerrorterm,andthattheinstrumentsarecorrectly excludedfromtheestimatedequation.thenullhypothesisisthattheinstrumentsarevalid, andwefailtorejectthenullforthevariablevectors,and withachi[squarevalueof0.00 and3.19.theseresultinp[valuesof0.97and0.20,respectively. 0 47

59 Summary0of0Results Third0Stage0 0 0 Theresultsoftheestimationofequation(3usingrobuststandarderrorsarepresented intable4.wedonotfindthatout[migrationnegativelyimpactstheeducationaleducation outcomeasotherstudieshavefound,butfoundtheoppositeeffect.grigorianandmelkonyan (2011alsofoundthatmigrationpositivelyimpactedschoolexpendituresinArmenia.One possiblereasonforthisfindingisthatchitwanhasalargenumberofschools,bothpublicand private,andtheavailabilityofeasilyaccessibleschoolsmayhelptominimizethedisruptive effectofhouseholdmemberout[migration.othercomparativestudiesfoundthatmaleand femalemigrationbothpositiveandnegativeimpactsonschoolenrollment,respectively,but afteraccountingfortheendogeneityproblem,onlyfemalemigrationnegativelyimpacted schoolenrollmentrates,andthenonlyamongyoungerchildren(6[11yearolds(acosta2009. Table5.4.Education,resultsofthirdstageregression RobustStandard Education Coefficient Error Age Male [ Married [ ** EducationofMales EducationofFemales 9.91 * 5.24 Income [ HouseholdSize [76.81 ** Dependents ProportionofMales ** OwnedLand Caste 2 [59.09 *** [47.46 * [ MHAT * RHAT [ C NumberofObservations 747 Chi[Squared Note: ***, **,and * denotesignificanceat1%,5%,and10%respectively. R[Squareisnotapplicablein3SLS Therewerealsopeculiaritiesthatshouldbementioned;manysurveyrespondentsin Chitwanfeltuncomfortableadmittinganychildcontributiontohouseholdactivities.Thismay 48

60 owemoretotheinfluenceofgovernmentpolicy,ngo,orotherresearchinstitutionsinnepal wefoundpicturedbillboardsencouragingstudyandnochildlaborinseveralvisiblelocations. Educationindicatorsmaybesubjecttomeasurementerror somehouseholdsmayoverstate educationalexpendituresandunderstatechildcontributiontohouseholdactivitiestoconform topublicpressure. Thecoefficientonremittanceisnegativeandinsignificant.Indirectlythissuggeststhat remittancesdonothelprelaxcreditconstraintsinordertoinvestinhumancapitalformation forfamiliesleftbehind.thenegativesignisconsistentwiththefindingsinarmenia(grigorian andmelkonyan2011.evenhouseholdswithmoreincome(excludingremittancearechoosing nottoinvestinmoreeducation.thecoefficientissmallandnegligible,butitisnegative.itis interestingtonotethatthelowercastesandmongolianhouseholdsreceivedonaveragelarger monthlyremittances,whilethetharuhouseholdswithlargerlandholdings,earnedlarger incomes.gurungs,oneofthemongolianethnicitygroupsfoundinnepal,havetraditionally servedinthebritishandindianarmies,migratingforyearsatatime(thiemeandwyss2005. Thecoefficientontotalfemaleeducationinthehouseholdispositiveandsignificant, whichisconsistentwithfindingsinotherstudies.educatedwomeninvestinchildren s education.theseresultsmayindicatethatgenderinequalityisslowlydeteriorating;especiallyif coupledwithourfindingthatgenderisinsignificant malechildrenarenotbeingpreferredto femalechildrenasotherstudieshavesuggested(bansakandchezum2009,amuedo[dorantes etal.2010.itusedtobethatwomenhadlittlecontroloverhouseholdexpenditureallocation. IfthefemalepopulationbecomesmoreeducatedinNepal,weshouldexpecttoseegreater opportunitiesforwomen,liketrading,whichmayinvolvetravelawayfromhome.williams (2009foundthatwomenfromChitwanareparticipatinginmigrationingreaternumbers,and sheattributesittotheeducationlevelsoffemalepopulations. Thepresenceofmoremalesinthehousehold(proportionofmalesalsoresultsinlarger investmentsineducation,asweexpected.thisisdifferentfromwhatgrigorianandmelkonyan (2011andAcosta(2009foundinArmeniaandElSalvador theproportionoffemalesandthe numberoffemalesimprovededucationaloutcomes.educatedwomenmaybecontributingto householdexpenditureallocation,butmalesstillearnmorethanfemalesinnepalandare consideredthemaincash[incomeearners(gartaulaetal.2012,thiemeandwyss2005. Followingthefactorsthatnegativelyimpacteducationaloutcomesthemost householdsize andmaritalstatus theethniccompositionofthehouseholdplaysasignificantpartinthe household sdecision[makingprocessandinvestmentsinhumancapitalformation. Conclusion Astheimportanceoflabormigrationandthesubsequentimpactonhouseholdshas cometotheforegroundofdevelopmentresearch,itisimportantforresearcherstomakeclear theuncertaintiesconcerningsomeofthebenefitsandpitfallsforruraleconomies.nepalese migrantstransferasignificantsumofremittancestotheircommunitiesoforigin,sothepaper usesdatafromchitwan,oneofthemostagriculturaldevelopeddistrictsinnepal,totestthe implicationsofmigrationandremittanceflowsonthebehaviorofreceivinghouseholds, specificallychildren sschooling.wefoundthatmonthlyremittanceshavenoimpactonthe household sexpenditureoneducation,butmigrationhasasignificantandpositiveone.policy 49

61 makersinterestedinimprovingtheeducationlevelsinnepalmayneedtotargethouseholds receivingthemostremittances. First,notallhouseholdsinNepalareabletoaffordtherelatedexpensesofmigration, especiallytointernationaldestinations.thereareinherentdisadvantagesfacinglower[caste andethnicgroups,andeveniflower[castehouseholdsfindthecollateraltofinancemigration, theymaynotbespendingtheirremittancesonproductiveinvestments.theymayinvestthe moneytorepayadebt,buildahouse,orpurchaseland.subsequently,theremaybealong[ termdifferentialconsequencethatmigrationofdifferentpopulationgroupsgenerates.it shouldnotbeexpectedthatinvestmentinchildren seducation,asalivelihoodstrategy,will graduallyspreadtothemoredisadvantagedsocietymembers(thiemeandwyss2005,adefila 2012,Mendola2007,Frostetal.2007,NepalFY,Yang2011. Policiesshouldaimtoenhancethecontributionsmadetotheeducationalattainmentof allethnicgroupsinnepal,especiallyintheruralpartsofthecountry.theyshouldconsiderthe limitationsofremittanceinthatendeavor,forexample,ifhouseholdsarestartingatverylow consumptionlevels.however,ifthedailyconsumptionrequirementsaremet,policiesand trainingmayhelpoptimizetheremittancepotentialforeducationlevels.educationlevelshave beenfoundtocontributetoanincreaseinagriculturalproduction(pudasaini1983and agriculturaltechnologyadoption(mgbenkaetal.2012;firdausandahmad2010;bansakand Chezum2009;AgrawalandGupta2005,whichmayhavegraveimplicationsonthecountry s long[runfoodsecurity.agrawalandgupta(2005alsofoundthathighereducationmightopen upopportunitiesforeducatedindividualstoworkoutsidechitwan,reducinghousehold s dependenceonnaturalresources. 50

62 CHAPTER6 GENERALCONCLUSIONS Astheimportanceoflabormigrationandthesubsequentimpactonhouseholdshas cometotheforegroundofdevelopmentresearch,itisimportantforresearcherstomakeclear theuncertaintiesconcerningsomeofthebenefitsandpitfallsforruraleconomies.nepal,a land[lockedcountrywithlimitedresources,wastheperfectcountrytostudyallthefacetsof migration,remittance,andtheirimpactonsustainabledevelopment.withthearrivalof multipartydemocracy,thegovernmentofnepal(gonbeganencouragingmigrationtoreduce poverty,unemployment,andprovideeconomicopportunitiesoutsideoffarming.thishas resultedinabettereconomicstatusforanumberofruralhouseholds,weakeningthe incentivestoparticipateinagriculture(williams2009.formidably,therestillremainalarge percentageofhouseholdsthatdependonagriculturalandnaturalresources,andthisthesis exploredsomeoftheconsequencesofbourgeoningout[migration. Theoutcomesofinterestincludedhouseholdadoptionofagriculturaltechnologyand conservationmethodsandperchildexpendituresoneducation.thethesisoffersananalysisof bothmigrationandremittanceflows,anditaddstotheliteraturebyexploringtheimpacton thebehaviorofreceivinghouseholdsinchitwan,oneofthemostagriculturallydeveloped districtsinnepal.itaddressesacommonproblemfoundinthemigrationliterature: unobservedhouseholdcharacteristicsarecorrelatedwithboththeoutcomeofinterestandthe likelihoodofmigration.weaccountfortheendogeneityofmigration,remittance,andthe investmentoutcomesusinganinstrumentalvariableapproachthatallowsustoestimate migrationandremittancessimultaneously.migrantfamiliesarenotrandomlyselectedamonga particularcommunity,andneitherarethehouseholdsthatreceiveremittances.future extensionofthisworkwilluseacountdatamodelinadditiontoconsideringtheendogeneity issue. Usingathree[stageleastsquares(3SLStechnique,wefoundthenumberofmigrantsin ahouseholdhadasignificantandpositiveimpactonthenumberofagriculturaltechnologies adoptedandyearlyperchildeducationexpenditures.however,ithadasignificantandnegative affectonthenumberofconservationmethodsadopted.wesuggestthatpolicymakers interestedinincreasingthenumberofconservationmethodsadoptedmayneedtosecure greaterparticipationbythosemostdependentonagricultureandthosewhohavetheavailable fundstoinvestintheagriculturalinfrastructureofthiscountry.thelaborscarcityinnepalmay becomeseverelyconstrainingforsustainableagriculturaldevelopmentifconservationmethods remainlaborintensive. Fortunately,thelargenumbersofunderemployedandunemployedworkingageadults wholeftnepalaretransferringasignificantsumofremittancestotheircommunitiesoforigin, makingupto25.83%ofgdp(nepalbastrabank2014.whileinsignificant,remittancehasa positiveeffectonthenumberofconservationtechnologyadopted.ifremittancescouldbe somehowchanneledtowardnaturalresourceconservation,itmaybepossibletomeetthe objectivesofdistributingthebenefitsofincreasedincomelevelstothemostvulnerablepeople insociety. 51

63 Therealsoexistsacultivationpracticethatisnotlaborintensive,somigranthouseholds couldchosetoadoptthematagreaterrateduetotheminimallaborrequirements(fao2008, FAO2012.ConservationAgriculture(CAisasustainableandanenvironmentallyfriendly managementsystemthatincludespracticessuchasminimumtillage,improvedcropvarieties, intercropping,andtheuseofcovercrops(laiaetal.2012.optimistically,nepal sfeedthe FutureprogramisutilizingCAaspartoftheircountryinvestmentplan.Theproblemisthatthey mayencounterthepoverty[trapandmindsetthatisacceleratingenvironmentaldegradationin otherpartsoftheworld.wecorroboratethefindingsthatsuggesteducationshouldbea predeterminingfactorintheassimilationofinformationandtechnologicaladoptionofca amongmorevulnerablefarmersinnepal(fao2008,nepalfy,adefila2012,mendola2007, Frostetal However,wewarnthatpoliciesencouragingeducationshouldaimtoenhancethe contributionsmadetotheeducationalattainmentofallethnicgroupsinnepal,especiallyinthe ruralpartofthecountry.theyshouldconsiderthelimitationsofremittance,forexample,if householdsarestartingatverylowconsumptionlevels.ifthedailyconsumptionrequirements aremet,policiesmayhelpoptimizetheremittancepotential.notonlyiseducationa predeterminingfactorininformationassimilationandtechnologicaladoptionamongfarmers,it mayhelphouseholdmembersaccessbetterjobs(pudasaini1983,laietal.2012,firdausand Ahmad2010,Ebojeietal.2012,Mgbenkaetal.2012.Clearly,informationandknowledgehelp thepooravailoftheopportunitiespresentedtothem. Theeffectivedisseminationofinformationisalsocrucial,andcooperativeorganizations thatspurcommunaleffort,providetraining,anddisseminateinformationmaybeonewayof impartingnewideasandagriculturaltechnologiesinnepal(agrawalandgupta2005,adeolaet al.2011,adefila2012,kolawoleetal.2012,mgbenkaetal.2012.communityandagricultural developmentagencieshavefoundtheseorganizationstobeeffectiveinimpartingnewideas, techniques,andharnessingcommunalresourcestowardsimprovingagriculturalproductionin othercountries.itcouldbeasourceofinformationtoeducatemigranthouseholdsaboutusing remittancesforproductiveinvestments,toadoptagriculturaltechnologyorconservation methods(alametal.2008,akteruzzamanetal.2008,firdausandahmad2010,adeolaetal. 2010,Mgbenkaetal.2012,Ahmedetal.2012,Ebojeietal.2012,Laiaetal Nepalalreadyhasdecentralizedcommunity[levelusergroupsintheChitwanValleyand agriculturalcooperativeshavealongstandinghistoryinnepal.membershipinsuchgroupshas beenshowntoimprovenaturalresourcemanagement.forexample,villagerslivingnexttothe protectednationalforestestablishedinchitwanin1973,participateinuser[groupswhichmeet tocontributetosavings,andbasedonarotationscheme,drawloansatcollectivelydecided interestrates.thehouseholdslivingintheseprotectedregionsbuildinfrastructureand contributetoafforestationprograms,therebyreducingpovertyandhouseholddependenceon naturalresources(agrawalandgupta2005.thechannelforthedisseminationofsustainable agriculturalpracticesisalreadyinplace,anditsimportanceinnepal sagriculturesectorhas beenemphasizedinthecurrentbudget2014/2015(nepalministryoffinance2014. Unlessappropriatepoliciesareimplemented,webelievemigrantremittanceswillbe usedmainlyforconsumption,withverylittlebeingusedforsustainableinvestmentorworse, maycontributetothedegradationofanalreadyvulnerableenvironment(maphosa2007,lez[ Vegaetal.2004,Masseyetal.2010.Forexample,wefoundthatprocessedconsumergoods 52

64 53 arebecomingaseriousprobleminnepalandthesituationmaybecomeworseinthefuture. 15 Thisstudyhelpsputthedeterminantsofadoptingresource[conservingtechnologiesina migrationcontext,andthereforehopetofacilitatebetterpolicydesign.withadequatepolicies toencourageca,forexample,agriculturaldevelopmentcouldconvergewithnaturalresource conservation,allowingmigrationandremittancetobeacatalystforsustainableagricultural developmentinruralnepal.ourfindingscanalsobeviewedinrelationtostudiesinotherparts oftheworldtogainabetterunderstandingoftheimpactofmigrationandremittance, especiallyontheruralpoorwhoarevulnerabletoenvironmentalhazards. 15 Itwasobservedduringfieldstudy,thattheNepalesealreadyregardpollutionlevelstobeaproblem,andmany appeartoparticipateinasilentprotestbywearingfacemaskstoinhibittheinhalationofdust.consuming commoditiesthatarenotmadeathomeareaffectingwaterways;adistressingleveloftrashandwasteisfillingthe streetsandrivers.

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69 APPENDIXA ADDITIONALTABLE Education,resultsofthefirstandsecondstageregressions Migration Remittances Robust Robust Coefficient Standard Coefficient Standard Error Error AgeofHead 0.02 *** 0.00 [4.02 *** 1.15 MaleEducation *** 1.67 FemaleEducation ** 1.54 Income 0.00 * 0.00 [0.07 *** 0.02 HouseholdSize 0.33 *** 0.04 [91.89 *** Dependents [0.12 ** *** OwnedLand [0.05 *** *** 3.04 Caste Low [ ** Mongolian Tharu(Indigenous [ WaterQuality [0.51 *** *** SoilQuality [0.59 *** MigrationExperience 0.44 *** 0.06 Participate MHAT *** Houses *** FinancedLand *** FinancedHouse NumberofObservations Chi[Squared Note: ***, **,and * denotesignificanceat1%,5%,and10%respectively. R[Squareisnotapplicablein3SLS 58

70 APPENDIX(B( SURVEY( Nepal&Ethnosurvey&of&Family,&Migration,&and&Development& 2012'2013 LouisianaStateUniversity Date: Name: Address: Longitude/Latitude: Interviewer: ForInternalUse: FinalI.D. Community Number: Household Number: Observations: 59

71 Table&A Name of Head Name of Spouse Code for Others: Son=S; Daughter=D; Grandson=GS; Granddaughter=GD; Relative=R; Other=0 Informationaboutthehousehold&members&wholivedinthehouseholdforatleast1dayinthelast12months&and&other& childrenofhouseholdheadwhonolongerliveinthehousehold.(recordinthisorder:householdheadfirst,thenthespouse; then,allthechildren(from&oldest&to&youngest,lastlyallotherpersonswholiveinthehousehold. Gender? Age? Place of Birth? City & District Marital Status? a Spouse from list A Caste? b During the last 12 months, how many months did they live here? (round up If lived in the household, their quality of Health? c Code Code Code Code Assist in which household activity? (All that apply d Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code Code (a Marital Status Who&Informed? 1-Single (numberin A : 2-Married 3-Consensual Union 4-Widowed 5-Divorced 6-Separated (b Caste: 1-Higher Caste 2-Lower Caste 3-Mongolian 4-Tharu (c Quality? 1- Very Bad 2- Bad 3-Good 4-Excellent 5-N/A 60 (d Household Activities: 1-Childcare 7-Family business 2-Take care of other family members 8-Farming 3-Housework 9-Other: 4-Household expenditure management 5-Home mortgage payment 6-Participation in community meetings

72 Table&B Number in A Name of Head Name of Spouse Code for Others: Son=S; Daughter=D; Grandson=GS; Granddaughter=GD; Relative=R; Other=0 InformationabouttheEDUCATION&ofhousehold&members&wholivedinthehouseholdforatleast1dayinthelast12months& and&other&childrenofhouseholdheadwhonolongerliveinthehousehold.(followthesameorderasintablea. Literate? Total Years of education Completed? Level of education Completed? a Enrolled in School? 61 If enrolled, type of eductional institution? b If enrolled, Average time required to attend school? Including transport time If enrolled, transport used? c If enrolled, total cost of schooling last year? (Rupee 1 YesNoUnk Code YesNoUnk Code Code Code 2 YesNoUnk Code YesNoUnk Code Code Code 3 YesNoUnk Code YesNoUnk Code Code Code 4 YesNoUnk Code YesNoUnk Code Code Code 5 YesNoUnk Code YesNoUnk Code Code Code 6 YesNoUnk Code YesNoUnk Code Code Code 7 YesNoUnk Code YesNoUnk Code Code Code 8 YesNoUnk Code YesNoUnk Code Code Code 9 YesNoUnk Code YesNoUnk Code Code Code 10 YesNoUnk Code YesNoUnk Code Code Code 11 YesNoUnk Code YesNoUnk Code Code Code 12 YesNoUnk Code YesNoUnk Code Code Code 13 YesNoUnk Code YesNoUnk Code Code Code 14 YesNoUnk Code YesNoUnk Code Code Code 15 YesNoUnk Code YesNoUnk Code Code Code 16 YesNoUnk Code YesNoUnk Code Code Code 17 YesNoUnk Code YesNoUnk Code Code Code 18 YesNoUnk Code YesNoUnk Code Code Code (a Level of education completed: 1-Elementary/Primary 2-Lower Secondary 3-Seconday 4-Higher Secondary 5- High school 6- Technical w/o other school 7- Technical school 8- College/University 9- Adult School (b Type of Educational Institution: 1-Public 2-Private, non-religious 3-Private, religious 4-Private, boarding school (c Transportation 1- Foot (Without Load 2- Bicycle/Richshaw 3- Motorcycle/Tempo 4- Car/Bus 5- Mixed (Foot/Vehicle 6- Next to Household (d Languages: 1-Nepali 2-Maithilii 3-Bhojpuri 4-Tharu 5-Tamang 6-Newari/Nepal Bhasa 7-Magar What languages can be spoken/ understood? (All that apply d 8-Awadhi 9-Bantawa 10-Gurung/Tamu 11-Limbu 12-Bajjika 13-English

73 Table&C& CurrentandpastagriculturallandsinNepal(separatebyunitofarea Land Total Area of Land? Total Area Cultivated? Total Area Rented/ Leased Out? Unit of Area? a Type of Land? b Distance from residence? (one way Tenancy? c Cost of rent/ purchase last year? (Rupee Financed? (All that apply d Year Acquired? Year Sold? Number of Workers Used Last Year? Family Other Members? Workers? CurrentAgriculturalLand 1 Code Code Code Code 2 Code Code Code Code 3 Code Code Code Code 4 Code Code Code Code 5 Code Code Code Code PastAgriculturalLand 1 Code Code Code Code 2 Code Code Code Code 3 Code Code Code Code 4 Code Code Code Code 5 Code Code Code Code (a Unit of Area 1- Bigha 4- Ropani 2- Katha 5- Ana 3- Dhur 6- Paisa (b Type of Land 1- Arable 5- Woodland/Forrest 2- Pond 6- Wetland 3- Terrace 7- Dry 4- Meadow 8- Other: (c Tenancy 1- Owned 2- Rented/Leased 3- Communal 4- Other Tenure (d Financed? 1-Savings 2-Loan from a bank 3-Loan from family 4-Loan from friend 5-Inheritance 6-Remittance 7-Other: Table&D LandQualityandManagementofCurrentLand(Landcorrespondstothelandnumberedin Land Land Productivity Good? Water Quality is Good? Soil Quality is Good? Land Degradation Present? b Did you have enough Labor last year? of Non- Fruit Trees? 62 Main Purpose of Non-Fruit Trees c After active involvement, area plan to sell (monetary purspose After active involvement, area plan to hand over to offspring/other 1 YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk Code 2 YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk Code 3 YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk Code 4 YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk Code 5 YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk Code (b Degradation: 0-None 1-Soil Erosion 2-Chemical 3-Physical (c Purpose of trees: 1- Wood/Firewood Production 2- Soil & Water Conservation 3- Herbal Plant Production 4-Other: After active involvement, area plan to other (Please explain

74 Table&E CurrentAvailabilityandUsageofAgriculturalInfrastructure(LandcorrespondstothelandnumberedinTable Agricultural Infrastructure and Technology Available in District? Used last year? If used last year, Total Cost last year? (Rupee If used last year, financed w/ Remittance? If available, Quality? b If do not use, Plan to use in the future? MechanizedModelFarmConcept YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk OneVillageOneProduct(OVOP YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk System BiogasSupportProgramme(BSP YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk Micro'irrigationProgramme YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk Exchangeofanimal/fishprogramme YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk Market YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk ElectricitySupply YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk TransportationFacility YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk FairpriceshopsforInputs YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk AgriculturalLoans YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk ColdStorage YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk FoodProcessing YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk SolarEnergytodehydrate YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk perishableproducts ValueAdded YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk FoodSupplyChain YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk AgriculturalCooperative YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk AgriculturalExtension YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk Climate/WeatherInformation YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk Agro'chemicalse.g.limeand YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk fertilizer Mineral/ChemicalFertilizer YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk Pesticide YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk OrganicManure YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk Improved/HybridSeed YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk CropBreeding YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk VegetableSeedProduction YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk ImprovedAnimalVariety YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk (d Quality? 1- Very Bad 2- Bad 3-Good 4-Excellent 5-N/A 63

75 Table&F CurrentAvailabilityandUsageofAgriculturalMachineryandEquipment(LandcorrespondstothelandnumberedinTable Agriculture Machinery and Equipment Available in District? Know How to Use? If used, first year used? If stopped, last year used? If used last year, Total Cost last year? (Rupee If used last year, financed w/ Remittance? If available, Quality? a If do not use, Plan to use in the future? IronPlough YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk PowerTiller YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk ShallowTubeWell YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk DeepTubeWell YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk Rower/DhikiPump YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk Tractor YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk Thresher YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk PumpingSet/Mortor YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk AnimalDrawnCart YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk CombinedHarvester YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk Sprayer YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk Biomasgasifier YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk Manualseed'cum' YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk fertilizerjabplanter PedalMillet YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk Threasher/Pearler CoffeePulpers YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk MinimumTillDrill YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk ZeroTillDrill YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk MiniSRR(simple, YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk small,low'costdryer Low'costSolar YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk Dryers RiceHusksStovefor YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk cooking Poly'house YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk (a Quality? 1- Very Bad 2- Bad 3-Good 4-Excellent 5-N/A 64

76 Table&G& CurrentAvailabilityandUsageofSoilandWaterConservationMethods(LandcorrespondstothelandnumberedinTable Soil and Water Conservation Methods Know How to Use? Enough Labor to use? If used, first year used? If stopped, last year used? If used last year, financed w/ Remittance? If not used, Why? a If do not use, Plan to use in the future? Placingplantrowsandtillagelinesatright YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk angletothenormalflowofsurfacerun'off Pitdugtoprotectandretainsoilandwater YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk outflows Alternateplantingofdifferentcropinstrips YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk Plantingtreesandshrubsaroundthe YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk farmlandtocontrolwinderosion Grassstripsalternatingwithcropstripson thesameplottocheckerosione.g.using vetivergrass YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk Usingthestrawtocovertheplotafterland YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk preparation Furrow'irrigatedraisedbed YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk No'tillage YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk Reduced'tillage YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk Minimum'tillage YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk Keepingthesoilcoveredwithgrowing YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk plants Usingtiedridges YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk Terracefarming YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk Usingcombinationofdifferentcrops YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk Alternatingperiodofcroppingandperiodof YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk fallowing Croprotation YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk Avoidanceofovergrazing YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk Establishmentofpermanentwaterways YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk Useofwater'harvestingtechniquessuchas YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk diggingpits Farmer'managedirrigationsystem YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk RainwaterHarvestingsystem YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk DripIrrigationsystem YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk Wastewaterreuseforagriculture YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk PlasticMulchinginVegetablePlots YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk Buildingdams YesNoUnk YesNoUnk YesNoUnk Code YesNoUnk (a Why not? 1- Cost 2- Lack of Labor 3- Lack of Info. 4-Not Profitable 5- Other: 65

77 Table&H Output/YieldofCropsLastYear(LandcorrespondstothelandnumberedinTable Crops Name of Crop? Type of Crop? a Main Variety? b Land Area Cultivated? Unit of area? c Irrigated? If irrigated, source? d Cost of Irrigation? (Rupee Used No Tillage? Production Quintal 1 Code Code Code YesNoUnk Code YesNoUnk Code 2 Code Code Code YesNoUnk Code YesNoUnk Code 3 Code Code Code YesNoUnk Code YesNoUnk Code 4 Code Code Code YesNoUnk Code YesNoUnk Code 5 Code Code Code YesNoUnk Code YesNoUnk Code 6 Code Code Code YesNoUnk Code YesNoUnk Code 7 Code Code Code YesNoUnk Code YesNoUnk Code 8 Code Code Code YesNoUnk Code YesNoUnk Code 9 Code Code Code YesNoUnk Code YesNoUnk Code 10 Code Code Code YesNoUnk Code YesNoUnk Code 11 Code Code Code YesNoUnk Code YesNoUnk Code 12 Code Code Code YesNoUnk Code YesNoUnk Code 13 Code Code Code YesNoUnk Code YesNoUnk Code 14 Code Code Code YesNoUnk Code YesNoUnk Code 15 Code Code Code YesNoUnk Code YesNoUnk Code (a Type of Crop 1-Traditional Food Crop 2-Vegetable Crop 3-Horticulture 5- Floriculture 6- Herbal Plants 7- Other: (b Variety 1- Local 2- Improved 3- Hybrid (c Unit of Area 1- Bigha 4- Ropani 2- Katha 5- Ana 3- Dhur 6- Paisa (d Source of Irrigation 1- Tube well, Boring 4- Conti. Flow Canal 2- Canal 5-Other 3- Pond, Well kg Used for? e (e Used For: 1- Commercial 2- Personal 3- Other: Table&I& UsageofAnimalsLastYear(Landcorrespondstothe Animals First Year Acquired? Improved Variety? Land How Many Total? How Many Male? How Many Female? 66 How Many Milking? How Many Laying Eggs? Financed w/ Remittance? Cows YesNoUnk YesNoUnk Buffallo YesNoUnk YesNoUnk Goats YesNoUnk YesNoUnk Oxen YesNoUnk YesNoUnk Horses YesNoUnk YesNoUnk Pig YesNoUnk YesNoUnk Chicken YesNoUnk YesNoUnk Ducks YesNoUnk YesNoUnk Pigeon YesNoUnk YesNoUnk Other: YesNoUnk YesNoUnk

78 Table&J Output/YieldofFruitTreesLastYear(LandcorrespondstothelandnumberedinTable Tree Name of Fruit? Main Land of Used Used Production? Variety? a Trees? Fertilizer? Pesticide? Quintal kg 1 Code YesNoUnk YesNoUnk Code 2 Code YesNoUnk YesNoUnk Code 3 Code YesNoUnk YesNoUnk Code 4 Code YesNoUnk YesNoUnk Code 5 Code YesNoUnk YesNoUnk Code 6 Code YesNoUnk YesNoUnk Code 7 Code YesNoUnk YesNoUnk Code 8 Code YesNoUnk YesNoUnk Code 9 Code YesNoUnk YesNoUnk Code 10 Code YesNoUnk YesNoUnk Code 11 Code YesNoUnk YesNoUnk Code 12 Code YesNoUnk YesNoUnk Code 13 Code YesNoUnk YesNoUnk Code 14 Code YesNoUnk YesNoUnk Code 15 Code YesNoUnk YesNoUnk Code (a Variety 1- Local 2- Improved 3- Hybrid Used For? b (b Used For: 1- Commercial 2- Personal 3- Other: Table&K AncillaryAgriculturalActivityLastYear(LandcorrespondstothelandnumberedinTable Ancillary Agricultural Activity? Answer Land (all that apply of Ponds Total Area of Pond Unit of Area a Used Rice Fields for fishery? MushroomFarming YesNoUnk Sericulture YesNoUnk Bee'keeping YesNoUnk Fishery YesNoUnk Code YesNoUnk Other: YesNoUnk (a Unit of Area 1- Bigha 4- Ropani 2- Katha 5- Ana 3- Dhur 6- Paisa 67

79 Table&L HouseholdIncome Agricultural Income Is agricultural income the main source of income? Was your income from agriculture or livestock production sufficient to feed your household last year? Was there surplus agricultural or livestock production to sell at the market? Average Monthly Income from agriculture or livestock production? (Rupee Wages/Salary from Within the District Average Monthly Income from Wages/Salary from within the district? (Rupee Purposes of Wages/Salary from within the district (All that apply a Wages/Salary from Outside the District Average Monthly Income from Wages/Salary from outside the district? (Remittance (Rupee Purposes of Remittances (All that apply a Approximate percentage of Remittances used for purpose 3 and 4? How is the money received? b Do you get the bank rate on remittance money? Wages/Salary from Outside Nepal Average Monthly Income from Wages/Salary from outside the district? (Remittance (Rupee Purposes of Remittances (All that apply a Approximate percentage of Remittances used for purpose 3 and 4? How is the money received? Do you get the bank rate on remittance money? Do you know how much it takes to send the money from the destination country to the home country? Answer YesNoUnk YesNoUnk YesNoUnk Answer Code Answer Code Code YesNoUnk Answer Code Code YesNoUnk YesNoUnk (b Received? 1- Hand Carried 2- Hundi 3- Using Banks 68 Other Sources of Household Income outside of agriculture and off-farm labor: Average monthly Income from Government Assistance (Rupee Purposes of Government Assistance (All that apply a Average monthly Assistance from an NGO (Rupee Purposes of NGO Assistance (All that apply a Answer Code Code Average monthly Pensions (Rupee Purposes of Pensions (All that apply a Code Average monthly Savings (Rupee Purposes of Savings (All that apply a Average monthly income from Renting Farming Equipment (e.g. bullock carts, tractor, pump, etc. (Rupee Purposes of income from Renting Farming Equipment (All that apply a Average monthly income from House rent/land lease (Rupee Purposes of income from House rent/land lease (All that apply a Average monthly income from Trade and other business (Rupee Purposes of income from Trade and other business (All that apply a Code Code Code Code (a Purpose: 1-Food and Maintenance 10-Education expenses 2-Construction or repair of house 11-Health expenses 3-Purchase of house or lot 12-Debt payment 4-Purchase of vehicle 13-Finance a special event 5-Purchase of tools 14- Purchase of consumer goods 6-Purchase of livestock 15-Recreation/entertainment 7-Purchase of agricultural inputs 16-Savings 8-Purchase of natural resource conservation inputs 9-Start/expand business 17-Other:

80 Table&M LaborHistory&within&the&DistrictforhouseholdmembersinTableA Number in A Name of Head Name of Spouse Code for Others: Son=S; Daughter=D; Grandson=GS; Granddaughter=GD; Relative=R; Other=0 Age? Year Started? Worked how long? Permanent Job? Dist. from residence? (one way 69 Transport Used? a Average Cost of Transport per month? (Rupee Occupation? b YesNoUnk Code Code Code YesNoUnk Code Code Code YesNoUnk Code Code Code YesNoUnk Code Code Code YesNoUnk Code Code Code YesNoUnk Code Code Code YesNoUnk Code Code Code YesNoUnk Code Code Code YesNoUnk Code Code Code YesNoUnk Code Code Code YesNoUnk Code Code Code YesNoUnk Code Code Code YesNoUnk Code Code Code YesNoUnk Code Code Code YesNoUnk Code Code Code YesNoUnk Code Code Code YesNoUnk Code Code Code YesNoUnk Code Code Code (a Transportation 1- Foot (Without Load 2- Bicycle/Richshaw 3- Motorcycle/Tempo 4- Car/Bus 5- Mixed (Foot/Vehicle 6- Next to Household (b Occupation Guide 0- Armed Forces 7-Craft and related trades worker 1- Managers 8- Plan and machine operator and assemblers 2- Professionals 9- Unskilled worker at elementary occupation 3- Technicians and associate professions 10- Agriculture 4- Clerical support 11- Skilled agricultural, forestry and fishery 5- Service and sales workers 12- Other: 6- Household chores Wages? Quantity (Rupee Unit c (c Wage Unit 1-Hourly 2-Daily 3-Weekly 4-Biweekly 5-Monthly 6-Yearly

81 Table&N Informationabouteachmigratory&experience&outside&the&districtforhouseholdmembersinTableA Number in A Name of Head Name of Spouse Code for Others: Son=S; Daughter=D; Grandson=GS; Granddaughter=GD; Relative=R; Other=0 Place of Destination? City & District Age? Year of Arrival? Worked how long? 70 Were they Married? How was trip financed? (All that apply a Remitted? Occupation? b Wages Quantity (Rupee YesNoUnk Code YesNoUnk Code Code YesNoUnk Code YesNoUnk Code Code YesNoUnk Code YesNoUnk Code Code YesNoUnk Code YesNoUnk Code Code YesNoUnk Code YesNoUnk Code Code YesNoUnk Code YesNoUnk Code Code YesNoUnk Code YesNoUnk Code Code YesNoUnk Code YesNoUnk Code Code YesNoUnk Code YesNoUnk Code Code YesNoUnk Code YesNoUnk Code Code YesNoUnk Code YesNoUnk Code Code YesNoUnk Code YesNoUnk Code Code YesNoUnk Code YesNoUnk Code Code YesNoUnk Code YesNoUnk Code Code YesNoUnk Code YesNoUnk Code Code YesNoUnk Code YesNoUnk Code Code YesNoUnk Code YesNoUnk Code Code YesNoUnk Code YesNoUnk Code Code (a Financed? 1-Savings 2-Loan from a bank 3-Loan from family 4-Loan from friend 5-Inheritance 6-Remittance 7-Other: (b Occupation Guide 0- Armed Forces 7-Craft and related trades worker 1- Managers 8- Plan and machine operator and assemblers 2- Professionals 9- Unskilled worker at elementary occupation 3- Technicians and associate professions 10- Agriculture 4- Clerical support 11- Skilled agricultural, forestry and fishery 5- Service and sales workers 12- Other: Unit c (c Wage Unit 1-Hourly 2-Daily 3-Weekly 4-Biweekly 5-Monthly 6-Yearly

82 Table&O Informationabouteachmigratory&experience&outside&NepalforhouseholdmembersinTableA Number in A Name of Head Name of Spouse Code for Others: Son=S; Daughter=D; Grandson=GS; Granddaughter=GD; Relative=R; Other=0 Place of Destination? State & Country Legal? Were they married? 71 Year of Arrival? Worked how long? How was trip financed? (All that apply a Remitted? Occupation? b YesNoUnk YesNoUnk Code YesNoUnk Code Code YesNoUnk YesNoUnk Code YesNoUnk Code Code YesNoUnk YesNoUnk Code YesNoUnk Code Code YesNoUnk YesNoUnk Code YesNoUnk Code Code YesNoUnk YesNoUnk Code YesNoUnk Code Code YesNoUnk YesNoUnk Code YesNoUnk Code Code YesNoUnk YesNoUnk Code YesNoUnk Code Code YesNoUnk YesNoUnk Code YesNoUnk Code Code YesNoUnk YesNoUnk Code YesNoUnk Code Code YesNoUnk YesNoUnk Code YesNoUnk Code Code YesNoUnk YesNoUnk Code YesNoUnk Code Code YesNoUnk YesNoUnk Code YesNoUnk Code Code YesNoUnk YesNoUnk Code YesNoUnk Code Code YesNoUnk YesNoUnk Code YesNoUnk Code Code YesNoUnk YesNoUnk Code YesNoUnk Code Code YesNoUnk YesNoUnk Code YesNoUnk Code Code YesNoUnk YesNoUnk Code YesNoUnk Code Code YesNoUnk YesNoUnk Code YesNoUnk Code Code (a Financed? 1-Savings 2-Loan from a bank 3-Loan from family 4-Loan from friend 5-Inheritance 6-Remittance 7-Other: (b Occupation Guide 0- Armed Forces 7-Craft and related trades worker 1- Managers 8- Plan and machine operator and assemblers 2- Professionals 9- Unskilled worker at elementary occupation 3- Technicians and associate professions 10- Agriculture 4- Clerical support 11- Skilled agricultural, forestry and fishery 5- Service and sales workers 12- Other: Wages Quantity (Rupee (c Wage Unit 1-Hourly 2-Daily 3-Weekly 4-Biweekly 5-Monthly 6-Yearly Unit c

83 Table&P HeadofHouseholdfamily&withmigratoryexperience(includesthosebornoutsideNepal Relationship w/ Head Table&Q Headofhouseholdextended&family&and&friends&withmigratoryexperience&(includesthosebornoutsideofNepal Relationship to Head How many currently live outside the community? How many (others lived outside the community before? 72 How many currently live outside Nepal? Uncles Cousins Nieces/nephews Siblingsinlaw(fromdirectfamily Childreninlaw Parentinlaw Friends Gender? Year of 1 st trip? Legal? Left Nepal? Total of trips within? Total of trips abroad? If left Nepal, how any different locations? Occupation? (Guide on Previous Page Remittted? Still Alive? If alive, Currently lives away? Mother YesNoUnk YesNoUnk Code YesNoUnk YesNoUnk YesNoUnk Father YesNoUnk YesNoUnk Code YesNoUnk YesNoUnk YesNoUnk Sibling1 YesNoUnk YesNoUnk Code YesNoUnk YesNoUnk YesNoUnk Sibling2 YesNoUnk YesNoUnk Code YesNoUnk YesNoUnk YesNoUnk Sibling3 YesNoUnk YesNoUnk Code YesNoUnk YesNoUnk YesNoUnk Sibling4 YesNoUnk YesNoUnk Code YesNoUnk YesNoUnk YesNoUnk Sibling5 YesNoUnk YesNoUnk Code YesNoUnk YesNoUnk YesNoUnk Sibling6 YesNoUnk YesNoUnk Code YesNoUnk YesNoUnk YesNoUnk Sibling7 YesNoUnk YesNoUnk Code YesNoUnk YesNoUnk YesNoUnk Sibling8 YesNoUnk YesNoUnk Code YesNoUnk YesNoUnk YesNoUnk Sibling9 YesNoUnk YesNoUnk Code YesNoUnk YesNoUnk YesNoUnk Sibling10 YesNoUnk YesNoUnk Code YesNoUnk YesNoUnk YesNoUnk Sibling11 YesNoUnk YesNoUnk Code YesNoUnk YesNoUnk YesNoUnk Sibling12 YesNoUnk YesNoUnk Code YesNoUnk YesNoUnk YesNoUnk How many (others lived outside Nepal before?

84 Table&R Informationabouthead&of&household&migratory&experienceoranother&migrantfromthehousehold NumberofPersonin A : On your trips within Nepal and abroad: Head Spouse Migrantin A Help on your first trip: Usethesetwocolumnsifthehouseholdheadis Collectonlyifhousehold amigrant headisnotamigrant What was the purpose of migrating? a Code Code Code How much was paid to broker? (Rupee If abroad, how long was initial visa for? (months If got a job, how did you get your job? b Code Code Code Lodging from WHOM upon arrival? c Code Code Code Did other FELLOW HOME-COMMUNITY MEMBERS live with you in the same house? YesNoUnk YesNoUnk YesNoUnk When needed money, who offered HELP? c Code Code Code Information about your last trip If got a job, how did you get your job? b Code Code Code If got a job, how long did it take to get your job? If got a job, how many hours did you work per week? If got a job, which months did you work? d (All that apply Code Code Code How many times did you communicate with household in home country? How many times did you send money to household in home country? How much total money did you send to household in home country? (Rupee Who in the household usually received the money? (Number from A Did you have a BANK account in country of work? YesNoUnk YesNoUnk YesNoUnk Did you have a CREDIT card in country of work? YesNoUnk YesNoUnk YesNoUnk (a Purpose of Migration? 1-Education 3-Job opportunity 4-Unemployed 5-Civil conflict/ war 6-Marriage arrangement/moved to join family 7-Family Problems 8- Poorer living conditions here 9- Do not own enough agricultural land 10-Poor quality of land or depleted soils 11-Other: (b How was the job obtained? 1-Searched by oneself 2-Recommended by a relative 3-Recommended by a friend 4-Recommened by a fellow home-community member 5-Through an employment agency 6-Contracted 7-Paid a friend/fellow home-community member 8-Other: 73 (c Who helped? 1-Fellow home-community member 2-Friend 3-Employer 4-Relative 5-Bank 6-Did not need help 7-Other: (d Months 1-Baishakh 2-Jeth 3-Asar 4-Saun 5-Bhadau 6-Asoj 7-Kattik 8- Mangsir 9- Pus 10- Magh 11- Fagun 12- Chait

85 Table&S Business Number Informationaboutthehistoryofbusiness,companies,orotheractivitiesthat&require&economic& investment&from&the&head&of&household& Type of Business? Year Started? Year Closed /Sold? If used last year, Number of Workers? Located in Nepal? Distance from residence? If purchased over a year ago, Cost of Cost of setup/ opening/ expanding Description Code (one way initial last year? a Family Other purchase? (Rupee Members? Workers? (Rupee 1 Code YesNoUnk Code 2 Code YesNoUnk Code 3 Code YesNoUnk Code 4 Code YesNoUnk Code 5 Code YesNoUnk Code Financed last year? (All that apply b (a Type of Business: 1-Store 2-Street Vendor 3-Restaurant/Bar 4-Workshop 5-Factory 6-Middleman Table&T HouseholdVehicleHoldings 7-Personal service 8-Professional/Technical services 9-Other services 10-Agriculture 11-Cattle Raising 12-Other (b Financed? 1-Savings 2-Loan from a bank 3-Loan from family 4-Loan from friend 5-Inheritance 6-Remittance 7-Other: Vehicle Type of Vehicle? a Year Acquired? Year Sold? Purchased in Nepal? Used for? b If purchased over a year ago, Cost of initial purchase of vehicle? (Rupee 74 Total cost of vehicle purchase/ maintenance last year? (Rupee Financed? (All that apply c 1 Code YesNoUnk Code Code Code 2 Code YesNoUnk Code Code Code 3 Code YesNoUnk Code Code Code 4 Code YesNoUnk Code Code Code 5 Code YesNoUnk Code Code Code (a Type of Vehicle 1-Auto 2-Pick-up/Van/Truck 3-Bus 4-Tractor 5-Taxi 6-Motorcycle 7-Other: (b Used For: 1- Commercial 2-Personal 3-Other: (c Financed? 1-Savings 2-Loan from a bank 3-Loan from family 4-Loan from friend 5-Inheritance 6-Remittance 7-Other: (d Quality? 1- Very Bad 2- Bad 3-Good 4-Excellent Quality of Vehicle? d

86 Table&U Informationaboutthehouse&living&in&and&other&propertiesownedbyhouseholdheadandspouse Property Number Type of Property? a Material of Const.? b Type of Floor? c Number of Rooms? Toilet Access? d Tenancy? e Year Acquired? 75 Year Sold? Located in Nepal? Distance from residence? Financed? f 1 1 Code Code Code Code YesNoUnk Code Code 2 Code Code Code Code Code YesNoUnk Code Code 3 Code Code Code Code Code YesNoUnk Code Code 4 Code Code Code Code Code YesNoUnk Code Code 5 Code Code Code Code Code YesNoUnk Code Code 6 Code Code Code Code Code YesNoUnk Code Code (a Type of Property 1-House of residence 2-House owned 3-Lot owned 4-Business place 5-Apartment building (b Material of Construction 1-Wood and tile roof 2-Wood and thatched roof 3-Brick and tile roof 4-Brick and cement roof (c Type of floor 1-Dirt 2-Wood 3-Cement 4-Finished (Tile/Carpet/etc (d Toilet Access: 1-Outhouse w/ sewer 2-Outhouse w/o sewer 3-Indoor toilet 4-Other: Table&V ServicesAvailableandUtilizedintheHouseofResidence (e Tenancy 1-Borrowed 2-Rent 3-Own 4-Owned by other relative 5-Without papers 6-Other: Service Available? Used last year? Year Acquired? Year Sold/or if Service Stopped, Last Year Used? Purchased in Nepal? Cost of Good? Rupee Financed w/ Remittance? Water YesNoUnk YesNoUnk YesNoUnk Code Electricity YesNoUnk YesNoUnk YesNoUnk Code Sewer YesNoUnk YesNoUnk YesNoUnk Code GarbageDisposal YesNoUnk YesNoUnk YesNoUnk Code Stove YesNoUnk YesNoUnk YesNoUnk YesNoUnk Code Refrigerator YesNoUnk YesNoUnk YesNoUnk YesNoUnk Code WashingMachince YesNoUnk YesNoUnk YesNoUnk YesNoUnk Code SewingMachine YesNoUnk YesNoUnk YesNoUnk YesNoUnk Code Radio YesNoUnk YesNoUnk YesNoUnk YesNoUnk Code TV YesNoUnk YesNoUnk YesNoUnk YesNoUnk Code DVD YesNoUnk YesNoUnk YesNoUnk YesNoUnk Code CableorSatellite YesNoUnk YesNoUnk YesNoUnk YesNoUnk Code Stereo/CDplayer YesNoUnk YesNoUnk YesNoUnk YesNoUnk Code Telephone YesNoUnk YesNoUnk YesNoUnk YesNoUnk Code CellularPhone YesNoUnk YesNoUnk YesNoUnk YesNoUnk Code Computer YesNoUnk YesNoUnk YesNoUnk YesNoUnk Code InternetService YesNoUnk YesNoUnk YesNoUnk Code Quality of Prop.? g (f Financed? 1-Savings 2-Loan from a bank 3-Loan from family 4-Loan from friend 5-Inheritance 6-Remittance 7-Other: Quality? g (g Quality? 1- Very Bad 2- Bad 3-Good 4-Excellent 5-N/A

87 TableW HouseholdAccesstoOutsideResourcesandServices Resource & Service Available in the District? Used last year? If used, Dist. from residence? (one way If used, Average time required to access? Including transport time 76 If used, Transport Used? a If used, Cost of Transport there and back? (Rupee NutritionInformation YesNoUnk YesNoUnk Code Code PrivatePrimarySchool YesNoUnk YesNoUnk Code Code PrivateSecondarySchool YesNoUnk YesNoUnk Code Code PrivateHighSchool YesNoUnk YesNoUnk Code Code PrivateTechnicalSchool YesNoUnk YesNoUnk Code Code PrivateCollege/University YesNoUnk YesNoUnk Code Code BoardingSchool Primary YesNoUnk YesNoUnk Code Code BoardingSchool Seconday YesNoUnk YesNoUnk Code Code BoardingSchool High YesNoUnk YesNoUnk Code Code SolarEnergyforcookingand YesNoUnk YesNoUnk Code Code boilingwater SolarEnergyforheatingand YesNoUnk YesNoUnk Code Code electrification SolarEnergyforlinkingup YesNoUnk YesNoUnk Code Code communicationfacilities Bank YesNoUnk YesNoUnk Code Code OtherCreditServices YesNoUnk YesNoUnk Code Code Healthcare YesNoUnk YesNoUnk Code Code PostalService YesNoUnk YesNoUnk Code Code PoliceStation YesNoUnk YesNoUnk Code Code PublicTransportation YesNoUnk YesNoUnk Code Code PublicLibrary YesNoUnk YesNoUnk Code Code Computer YesNoUnk YesNoUnk Code Code InternetService YesNoUnk YesNoUnk Code Code GovernmentOffice YesNoUnk YesNoUnk Code Code GovernmentAssistance YesNoUnk YesNoUnk Code Code NGOOffice YesNoUnk YesNoUnk Code Code NGOAssistance YesNoUnk YesNoUnk Code Code If used, Quality? b (a Transportation 1- Foot (Without Load 2- Bicycle/Richshaw 3- Motorcycle/Tempo 4- Car/Bus 5- Mixed (Foot/Vehicle 6- Next to Household (b Quality? 1- Very Bad 2- Bad 3-Good 4-Excellent 5-N/A

88 Table&X HouseholdExpenditure In&the&past&12&Months: Computer Other electronic goods (e.g. DVDs, TV Household appliances (e.g. furniture, kitchen ware, refrigerators, air conditioners, bedding Wedding/Engagement/Funerals Luxury goods (e.g. Jewelry and luxury car Home improvement (e.g. roof, floor, plumbing Income taxes, land taxes, housing and property taxes, etc. Repair and other expenses for personal vehicle (Registration, Fines, etc. Health Doctor fees Traditional Medicine and Health Services Hospital/Clinic Fees Medicine/Drugs Laboratory tests Operations Productive assets (e.g. sewing machine Setting up a business/opening a store House or land purchase (ghar and ghaderi, except land for agricultural purposes Loan Repayment Farming equipment (e.g. trucks, tractor Resource conservation equipment (e.g. drip irrigation, plastic mulching Education/apprenticeship (including tuition fees, tutor fees, school uniform, books, and supplies Other: (Specify Answer(Rupee In the past 30 days: Food Fuel Transportation Cell phone/mobile phone Rent for Housing Grains, maize meal, and pulses Fruits Vegetables Dairy Meat Firewood (Bundlewood, Logwood, Sawdust Kerosene oil Coal, Charcoal Cylinder gas Matches, Candle, Lighter, Lantern Public (e.g. bus/taxi fares Personal (e.g. petrol, diesel, motor oil Initial Cost Service Bills Payment for utilities (e.g. gas, water, electricity if separate from rentals Wages paid to servants, gardeners, gatekeepers, etc. Household cleaning articles (Washing soap, powder, etc. Entertainment (Cinema, Radio tax, Cable TV, Cassette rentals, etc. Newspapers, Books, Stationery supplies Clothing and footwear Answer (Rupee 77

89 Table&Y InformationaboutNUTRITION&forhousehold&members&wholivedinthehouseholdforatleast1dayinthelast12months. Number in A Name of Head Name of Spouse Code for Others: Son=S; Daughter=D; Grandson=GS; Granddaughter=GD; Relative=R; Other=0 Has an overall healthy diet? Consume protein at least once a week? If consume, Quality of Protein? a Consume milk/milk products at least once a week? If consume, Quality of milk/milk products? a Consume fruit at least once a week? If consume, Quality of Fruit? a Consume vegetables (not starch at least once a week? If consume, Quality of Vegetables? a 1 YesNoUnk YesNoUnk Code YesNoUnk Code YesNoUnk Code YesNoUnk Code 2 YesNoUnk YesNoUnk Code YesNoUnk Code YesNoUnk Code YesNoUnk Code 3 YesNoUnk YesNoUnk Code YesNoUnk Code YesNoUnk Code YesNoUnk Code 4 YesNoUnk YesNoUnk Code YesNoUnk Code YesNoUnk Code YesNoUnk Code 5 YesNoUnk YesNoUnk Code YesNoUnk Code YesNoUnk Code YesNoUnk Code 6 YesNoUnk YesNoUnk Code YesNoUnk Code YesNoUnk Code YesNoUnk Code 7 YesNoUnk YesNoUnk Code YesNoUnk Code YesNoUnk Code YesNoUnk Code 8 YesNoUnk YesNoUnk Code YesNoUnk Code YesNoUnk Code YesNoUnk Code 9 YesNoUnk YesNoUnk Code YesNoUnk Code YesNoUnk Code YesNoUnk Code 10 YesNoUnk YesNoUnk Code YesNoUnk Code YesNoUnk Code YesNoUnk Code 11 YesNoUnk YesNoUnk Code YesNoUnk Code YesNoUnk Code YesNoUnk Code 12 YesNoUnk YesNoUnk Code YesNoUnk Code YesNoUnk Code YesNoUnk Code 13 YesNoUnk YesNoUnk Code YesNoUnk Code YesNoUnk Code YesNoUnk Code 14 YesNoUnk YesNoUnk Code YesNoUnk Code YesNoUnk Code YesNoUnk Code 15 YesNoUnk YesNoUnk Code YesNoUnk Code YesNoUnk Code YesNoUnk Code 16 YesNoUnk YesNoUnk Code YesNoUnk Code YesNoUnk Code YesNoUnk Code 17 YesNoUnk YesNoUnk Code YesNoUnk Code YesNoUnk Code YesNoUnk Code 18 YesNoUnk YesNoUnk Code YesNoUnk Code YesNoUnk Code YesNoUnk Code (a Quality? 1- Very Bad 2- Bad 3-Good 4-Excellent 5-N/A 78

90 Table&Z1& InformationaboutFOOD&SECURITY&forhousehold&members&wholivedinthehouseholdforatleast1dayinthelast12months. 1 Weworriedwhetherourfoodwouldrunoutbeforewegotmoneytobuymore. OftenSometimesNeverNA 2 Thefoodthatweboughtjustdidn tlastandwedidn thavemoneytogetmore. OftenSometimesNeverNA 3 Wecouldn taffordtoeatbalancedmeals. OftenSometimesNeverNA 4 Wereliedononlyafewkindsoflow'costfoodtofeedourchildrenbecausewewererunningoutofmoneytobuyfood. OftenSometimesNeverNA 5 Wecouldn tfeedourchildrenabalancedmeal,becausewecouldn taffordthat. OftenSometimesNeverNA 6 Thechildrenwerenoteatingenoughbecausewejustcouldn taffordenoughfood. OftenSometimesNeverNA 7 Didyouorotheradultsinthehouseholdevercutthesizeofyourmealsorskipmealsbecausetherewasn tenoughmoney forfood? YesNoNA 8 (Ifyestoquestion7What month in which it occurred? Code (All that apply a 9 Didyouorotheradultsevereatlessthanyouortheyoughtbecausetherewasn tenoughmoneyforfood? YesNoNA 10 Wereyouorotheradultseverhungry,butdidn teat,becausetherewasn tenoughmoneyforfood? YesNoNA 11 Didyouorotheradultsloseweightbecausetherewasn tenoughmoneyforfood? YesNoNA 12 Didyouorotheradultsinyourhouseholdevernoteatforawholedaybecausetherewasn tenoughmoneyforfood? YesNoNA 13 (Ifyestoquestion12What month in which it occurred? Code (All that apply a 14 Didyouevercutthesizeofanyofthechildren smealsbecausetherewasn tenoughmoneyforfood? YesNoNA 15 Werethechildreneverhungrybutyoujustcouldn taffordmorefood? YesNoNA 16 Didanyofthechildreneverskipamealbecausetherewasn tenoughmoneyforfood? YesNoNA 17 (Ifyestoquestion16What month in which it occurred? Code (All that apply a 18 Didanyofthechildrenevernoteatforawholedaybecausetherewasn tenoughmoneyforfood? YesNoNA (a Months 1-Baishakh 2-Jeth 3-Asar 4-Saun 5-Bhadau 6-Asoj 7-Kattik 8- Mangsir 9- Pus 10- Magh 11- Fagun 12- Chait 79

91 Table&Z2 InformationaboutFOOD&SECURITY&forhousehold&members&wholivedinthehouseholdBEFORE&ANY&Household&MIGRATION. 1 Weworriedwhetherourfoodwouldrunoutbeforewegotmoneytobuymore. OftenSometimesNeverNA 2 Thefoodthatweboughtjustdidn tlastandwedidn thavemoneytogetmore. OftenSometimesNeverNA 3 Wecouldn taffordtoeatbalancedmeals. OftenSometimesNeverNA 4 Wereliedononlyafewkindsoflow'costfoodtofeedourchildrenbecausewewererunningoutofmoneytobuyfood. OftenSometimesNeverNA 5 Wecouldn tfeedourchildrenabalancedmeal,becausewecouldn taffordthat. OftenSometimesNeverNA 6 Thechildrenwerenoteatingenoughbecausewejustcouldn taffordenoughfood. OftenSometimesNeverNA 7 Didyouorotheradultsinthehouseholdevercutthesizeofyourmealsorskipmealsbecausetherewasn tenoughmoney forfood? YesNoNA 8 (Ifyestoquestion7What month in which it occurred? Code (All that apply a 9 Didyouorotheradultsevereatlessthanyouortheyoughtbecausetherewasn tenoughmoneyforfood? YesNoNA 10 Wereyouorotheradultseverhungry,butdidn teat,becausetherewasn tenoughmoneyforfood? YesNoNA 11 Didyouorotheradultsloseweightbecausetherewasn tenoughmoneyforfood? YesNoNA 12 Didyouorotheradultsinyourhouseholdevernoteatforawholedaybecausetherewasn tenoughmoneyforfood? YesNoNA 13 (Ifyestoquestion12What month in which it occurred? Code (All that apply a 14 Didyouevercutthesizeofanyofthechildren smealsbecausetherewasn tenoughmoneyforfood? YesNoNA 15 Werethechildreneverhungrybutyoujustcouldn taffordmorefood? YesNoNA 16 Didanyofthechildreneverskipamealbecausetherewasn tenoughmoneyforfood? YesNoNA 17 (Ifyestoquestion16What month in which it occurred? Code (All that apply a 18 Didanyofthechildrenevernoteatforawholedaybecausetherewasn tenoughmoneyforfood? YesNoNA (a Months 1-Baishakh 2-Jeth 3-Asar 4-Saun 5-Bhadau 6-Asoj 7-Kattik 8- Mangsir 9- Pus 10- Magh 11- Fagun 12- Chait 80

92 Table&AA Number in A Name of Head Name of Spouse Code for Others: Son=S; Daughter=D; Grandson=GS; Granddaughter=GD InformationaboutNETWORKS&forhousehold&members&wholivedinthehouseholdforatleast1dayinthelast12months. (FollowthesameorderasinTableA. Belong to any group/ organization/ network/ association? Which groups or organizations do they belong to? (All that apply a How many times per month do they meet for group activity? Average time required to attend a group activity? Including transport time Transport used? b Cost of Transport? (Rupee Monthly fees/dues paid to group? (Rupee Own a cell phone? 1 YesNoUnk Code Code YesNoUnk 2 YesNoUnk Code Code YesNoUnk 3 YesNoUnk Code Code YesNoUnk 4 YesNoUnk Code Code YesNoUnk 5 YesNoUnk Code Code YesNoUnk 6 YesNoUnk Code Code YesNoUnk 7 YesNoUnk Code Code YesNoUnk 8 YesNoUnk Code Code YesNoUnk 9 YesNoUnk Code Code YesNoUnk 10 YesNoUnk Code Code YesNoUnk 11 YesNoUnk Code Code YesNoUnk 12 YesNoUnk Code Code YesNoUnk 13 YesNoUnk Code Code YesNoUnk 14 YesNoUnk Code Code YesNoUnk 15 YesNoUnk Code Code YesNoUnk 16 YesNoUnk Code Code YesNoUnk 17 YesNoUnk Code Code YesNoUnk 18 YesNoUnk Code Code YesNoUnk (a Groups, Organization, Association Type 1-Farmer/fisherman 9-Political 2-Irrigation related 10-Cultural 3-Trade/Business 11-Environmental Protection 4-Professional 12-Sports Group 5-Hometown 13-Veterans 6-Trade Union 14-Youth Group 7-Religious/Spiritual 15-Parent-teacher 8-Neighborhood/village council 16-Other: (b Transportation 1- Foot (Without Load 2- Bicycle/Richshaw 3- Motorcycle/Tempo 4- Car/Bus 5- Mixed (Foot/Vehicle 6- Next to Household 81