Open AccessRole of Inflow of Resources on Economic Growth of Nepal
Author(s) -
Tilak Singh Mahara,
Naw Raj Bhatt
Publication year - 2019
Publication title -
the economic journal of nepal
Language(s) - English
Resource type - Journals
ISSN - 1018-631X
DOI - 10.3126/ejon.v42i3-4.36037
Subject(s) - cointegration , distributed lag , inflow , economics , short run , earnings , private sector , macroeconomics , econometrics , economic growth , finance , geography , meteorology
This study attempts to examine the role of the inflow of resources on the economic growth of Nepal incorporating annual time-series data sets of 45 years from 1975 to 2019. The autoregressive distributed lag approach to cointegration is used to identify the long-run as well as the short-run relationship between the variables. The empirical finding indicates that there is a positive relationship between the inflow of resources and economic growth. Quantitatively, gross national saving, domestic loans, foreign loans, and export earnings have a positive impact on the economic growth in both the long-run as well as short-run for the Nepalese economy. Policies encouraging private sector participation, enlarging efficiency, and effectiveness of public sector projects, and expanding export base must be implemented.