Growth In Nepal Research Articles

Nexus Between Tax Revenue and Economic Growth in Nepal

Nexus Between Tax Revenue and Economic Growth in Nepal

Impact of Motivational Factors on Employee Performance on Banking Industry in Nepal

This research investigates the impact of motivational factors on employee performance within the Nepalese banking industry, a sector critical for the nation's financial stability and economic growth. Recent growth in Nepal's banking sector, driven by factors such as increased financial inclusion and technological advancements, underscores the need for a highly motivated and productive workforce. Employee performance, defined as the measurable contribution of an individual to organizational goals, is crucial for maintaining a competitive edge. This study explores the relationship between motivation and performance, drawing on need-based theories, goal-setting theory, and social cognitive theory, while considering Nepal's unique socio-cultural context. This study investigates the impact of intrinsic and extrinsic motivational factors on employee performance within the banking sector in Nepal. Data were collected from 350 respondents across various banks through online surveys, with a pilot test conducted to ensure clarity and reliability. The survey assessed both types of motivational factors and their influence on employee performance. Demographic analysis provided key insights into the participant pool, enhancing the understanding of the sample's characteristics. The findings underscore the importance of both intrinsic factors, such as job satisfaction and professional development, and extrinsic factors, including competitive salaries and job security, as key motivators for employee performance. Additionally, the study highlights the influence of cultural values, such as collectivism and respect for hierarchy, in shaping employee motivation in Nepal. By employing a descriptive research design and rigorous methodological steps, including statistical analysis using SPSS, this study provides a comprehensive understanding of the motivational landscape in Nepal's banking sector. The insights gained can guide banks in developing effective strategies to enhance employee motivation and performance, contributing to the overall success and growth of the industry.

Government Expenditure and Economic Growth of Nepal

Purpose: This study aims to analyze the relationship between various categories of government expenditure and economic growth in Nepal. The purpose is to understand how these defense, health, agriculture and education expenditures influence economic performance and offer insights for more effective resource allocation.Methods: This research used a combination of descriptive and causal research designs, using secondary data sourced from published reports. Data from 1976 to 2022 AD were selected for its comprehensive data availability and analyzed.Results: The findings reveal that defense expenditure has a negative and significant association with economic growth, suggesting that high levels of defense spending are detrimental to economic development. Conversely, health and education expenditures show positive and significant relationships with economic growth, highlighting the importance of investing in human capital for fostering sustainable development. Agriculture expenditure, although positively related to economic growth, is statistically insignificant, indicating the need for policy refinements to enhance its impact. Conclusion: The study underscores the necessity for strategic reallocation of government resources. Reducing defense expenditures and increasing investments in health, education and agriculture are essential for promoting robust and sustainable economic growth.

Bank-Based Financial Development and Economic Growth in Nepal

Bank-Based Financial Development and Economic Growth in Nepal

Impact of Financial Development on Economic Growth of Nepal

This study examines the impact of financial development on economic growth of Nepal. The dependent variables are real gross domestic product and per capita income. The independent variables are money supply, stock market capitalization, private sector credit, financial access and net foreign direct investment inflows. The study is based on time series data for the period by Ministry of Finance and Central Bureau of Statistics of Nepal. The correlation coefficients and regression models are estimated to test the significance and importance of financial development on economic growth in Nepal. The study showed that stock market capitalization has a positive impact on real gross domestic product and per capita income. It indicates that higher the stock market capitalization, higher would be the real gross domestic product and per capita income. Similarly, there is a positive impact of private sector credit to GDP on real gross domestic product and per capita income. It indicates that increase in private sector credit leads to increase in real gross domestic product and per capita income. In addition, broad money supply has a positive impact on real gross domestic product and per capita income indicating that higher the broad money supply, higher would be the real gross domestic product and per capita income. Similarly, financial access has a positive impact on real gross domestic product and per capita income. It indicates that increase in financial access leads to increase in real gross domestic product and per capita income. Likewise, net foreign direct investment inflow has a positive impact on real gross domestic product and per capita income. It indicates that increase in net foreign direct investment inflow leads to increase in real gross domestic product and per capita income of Nepal.

The Nexus between Remittance and Economic Growth in Nepal

Background: Remittance has been a pivotal source of financing economic activities in lower-income nations, including Nepal and could significantly boost the economy.The key objective of the study is to inspect the link between remittance inflow and economic growth in Nepal. Methodology: This study uses the Auto-Regressive Distributive Lag (ARDL) approach to cointegration. The Bounds test has been carried out to explore the existence of a long-run association between variables. Results: The empirical outcomes indicated a positive and significant long-run relationship between remittance inflow and economic growth in Nepal. Similarly, capital spending and consumption expenditure have also positively and significantly contributed to the economy. Conclusion: The study concludes that remittance inflow has been supporting economic growth episodes in Nepal, and an increased flow of remittance can boost the economy permanently if it is utilized in productive and capital formation channels. Implications: The study implies that real economic growth in Nepal can be enlarged if the policymakers focus on the productive linkage of remittance income in the country. Originality: This paper is original and has not been published in other publications. Similarly, no financial support has been received while working on this paper. Paper Type: Research paper

Overseas Capital Streams and Economic Growth Nexus: Pragmatic Insights from Nepal

The objective of the present research is to ascertain the impact of foreign capital inflows, including grants, loans, remittances, and income from tourism, on the economic growth of Nepal. This study utilizes secondary data acquired from several Nepalese economic surveys and World Bank reports. The data consists of 35 data points spanning from the fiscal years 1987/88 to 2021/22. The link between foreign capital inflows and GDP growth in Nepal is examined using fundamental statistical approaches like quantile regression, trace and Max-Eigen cointegration tests, and descriptive statistics. The results show that Nepal's grants, debt, foreign remittances, tourism earnings, and GDP growth co-integrate over the long term. Notably, 80.5 percent of Nepal's GDP growth fluctuation is accredited to foreign grants, loans, remittances, and tourism income. While foreign loans and grants are not statistically significant in and of themselves to measure GDP growth, foreign remittances and tourism income are. For every percentage increase in the median value of remittance and tourism income, the GDP grows by 0.251 and 0.816 percent, respectively. More revenue from tourism than from remittances goes towards Nepal's economic growth. Legislators can, therefore, enact suitable measures to encourage the expansion of the tourism industry

Analysis of Stock Market Trends for Market Capitalization and Securities Management: An approach to Nepalese Stock Market

Attraction towards share market is increasing day by day. Relevance for guiding people towards purchase and sale of share is also increasing everywhere in the world. Nepal is a poor country having well developed share market, but some sort of hurdles and technical disparities are still creating problems in operation of this market. Increasing economic crisis for last two years has made this market critical. Decrease in price of share is caused by increasing losses in business and industry at present. The main objective of the study is to examine the growth trend of the Nepalese securities market. It helps to analyze the trend of Nepalese stock market in terms of market capitalization, number of transaction, number of securities traded and number of securities listed and to examine the space of primary market growth in Nepal. this work is motivated by the works of (see[6-31]).

Autoregressive Integrated Moving Average Predictive Modelling for Per Capita GDP of Nepal

A nation's Gross Domestic Product (GDP) is an important index that reflects the health and performance of an economy and its aggregate income. In this paper, annual data of Nepal's GDP for the period 1960 – 2022 is used to forecast the GDP of Nepal through Autoregressive Integrated Moving Average (ARIMA) modelling techniques. We seek to make accurate long-term predictions for the period 2023 – 2037 to gain insights into the future expected trajectory of economic growth in Nepal. In the present empirical study, stationarity at the second-order differencing with the ARIMA (2, 2, 1) model is identified to predict the GDP of Nepal for the next 15 years. The finding shows that the forecast values of Nepal’s GDP will be $1384.426 per capita in 2023 and $2180.822 per capita in 2037. Our study provides skeletal guidance for government bodies and investors who rely on planning and strategizing resources on accurate predictions of GDP per capita. By accurately predicting GDP per capita, administrators in investment and policy making can make informed economic decisions that may steer economic growth, stability, and development in an optimum direction.

Does Interest Rate Impact Economic Growth? Empirical Insight from Nepal

Background: The relationship between interest rates, inflation, and non-performing loans on economic growth is debated in theoretical and empirical research. Hence, the study examines the effect of interest rate, inflation rate, and non-performing loans on the economic growth in Nepal. Methods: The paper incorporated quarterly data spanning nine years (2011-2019) and consisted of 972 observations. The study collected secondary data from the official websites of Nepal Rastra Bank and the Ministry of Finance, Nepal. The study used a panel cointegration test and random-effect models to examine the long-run relationship between predictor and response variables. Results: The impact of lending rate (LR) on economic growth is positive and statistically significant (β1 = 0.017, p < .01) in Nepal. Similarly, the coefficient of LNCPI (β2 = 0.687, p < .01) suggests that there is a positive relationship between the Consumer Price Index (CPI) and the Gross Domestic Product (GDP). The regression coefficient of CPI (β3 = -.001, p > .05) suggests that an increase in non-performing loans (NPL) led to a decrease in GDP. However, this relationship was not statistically significant for the Nepalese Economy. Conclusion: The study concludes that the interest and inflation rates positively affect Nepal's economic growth. The findings indicate that policymakers, such as Nepal Rastra Bank, should maintain interest rates at an appropriate level. Novelty: This study is novel because it thoroughly analyzes numerous observations over long periods to investigate the impacts of loan rates, inflation rates, and non-performing loans on economic growth in Nepal, improving its generalizability.

Effect of Private Sector Credit on Economic Growth in Nepal

This study aims to examine the key economic indicators with private sector credit and economic growth in Nepal. Commercial banks and other financial institutions lend money to businesses and individuals for investment and consumption. This study aims to analyze key economic indicators in Nepal, including Real Gross Domestic Product (RGDP), Private Sector Credit (PSC), and Gross Capital Formation (GCF), spanning from 1975 to 2022. Employing a quantitative methodology, econometric techniques such as time series analysis, regression modeling, and hypothesis testing were utilized to examine the long-term relationships among these variables, with a particular focus on the impact of Private Sector Credit on Economic Growth (EG). The findings, derived from comprehensive econometric analyses including co-integration tests and vector error correction models, reveal significant insights into Nepal’s economic performance and financial system. Results indicate that Private Sector Credit plays a crucial role in stimulating economic growth, with approximately 40.07% of the previous year’s imbalance influenced by the long-term elasticity of independent variables. These findings offer valuable insights for policymakers, businesses, and investors, facilitating informed decision-making to promote sustainable economic development in Nepal. Further research is recommended to explore the correlation between the diversification of Private Sector Credit types and economic growth more comprehensively.

Perceived Stress and Online Compulsive Buying Behaviour among Women Consumers in Butwal Sub- Metropolitan City

The article discusses the phenomenon of compulsive buying, emphasizing its prevalence and the associated negative consequences such as financial distress and impaired functioning. The present study examined the mediating role of Avoidance coping and the moderating role of self-esteem in the association between perceived stress and online compulsive buying. A sample of 409 female consumers, completed questionnaire measures of perceived stress, self-esteem, Avoidance coping, and online compulsive buying The focus is on the connection between compulsive buying and online shopping, particularly in the context of the growing dependence on the internet. The study also explores the role of avoidance coping mechanisms in understanding and explaining obsessive online purchasing behavior. Additionally, the article delves into the comorbidity of compulsive buying with various psychological disorders. The significance of mood, self-esteem, and coping strategies in compulsive shopping is highlighted. The geographical context of Butwal, a rapidly developing city in Nepal, is briefly described, and the article concludes with insights into the factors influencing online customer satisfaction and e-commerce growth in Nepal. Overall, the article provides a comprehensive overview of the complexities surrounding compulsive buying, particularly in the context of online shopping, and its implications for individuals and society.

Contribution of the non-life insurance sector to the economic growth of Nepal: Analysis from the EGLS approach

Nepal’s non-life insurance sector holds immense potential to drive economic growth and boost the nation towards a secure financial future. Embracing this potential is a goal and a pivotal catalyst for substantial change. The study aims to determine how the non-life insurance sector can drive economic growth in Nepal. The methodology of this study uses quantitative analysis of financial data from 2013 to 2022 from 20 non-life insurance companies in Nepal and econometric modeling to assess the sector’s impact on economic growth. Using Panel EGLS (Estimated Generalized Least Squares) regression analysis, the findings show that with one-unit increments in total investment, total premium, and total tax paid, GDP is expected to change by approximately 591.52, –920.54 and 8,470.65 units, respectively. In contrast, the coefficient for total profit is –910.3477 and is not statistically significant. The study’s main conclusion implies that the insurance sector contributes to the country’s economic growth by investing in productive activities and paying taxes to the government. Still, it also imposes a cost on the economy by charging high premiums to the insured. The profitability of the insurance sector does not affect the GDP, which indicates that the insurance sector is competitive and efficient or that other factors determine the GDP besides the insurance sector. This study contributes to a deeper understanding of the non-life insurance sector’s role in Nepal’s economic development and informs evidence-based policy decisions.

Determinants of Economic Growth of Nepal

The purpose of this paper is to analyse the impact of Foreign Direct Investment (FDI), Exchange Rate (EXR) and Consumer Price Inflation (CPI) to the Gross Domestic Product (GDP) growth in Nepal. Descriptive and causal comparative research designs were used to analyse the impact of FDI, EXR and CPI on economic growth of Nepal. The study has used 17 years' annual time-series data of FDI, GDP at current price, CPI, and EXR throughout the FY 2006/07 to 2022/23 in Nepal. The empirical results found that EXR and FDI have positive and significant impact on the economic growth of Nepal whereas the adverse effect of CPI on economic growth has been found. FDI and favorable EXR appearing as key drivers of economic growth, but rising prices could slow down it.

Correlation between Foreign Direct Investment and Economic Growth in Nepal

Nepal's strategic location between India and China, coupled with favorable market access and lower tariffs, presents an enticing prospect for foreign investors. Despite these advantages, the nation faces challenges, including a fragile financial sector, bureaucratic hurdles, and political instability, hindering substantial Foreign Direct Investment (FDI). This study investigates the correlation between FDI and economic growth in Nepal, recognizing the critical role of FDI in the country's development. The goal of the study is to examine the linear relationship between these factors while analyzing the trajectory and structure of foreign direct investment and economic growth in Nepal. Among the specific goals are looking at FDI inflow by sector, assessing the link between FDI and economic growth, and developing theories based on these goals. The research design is explorative, descriptive, and analytical, employing time series data from FY 1994 to 2021. Data is sourced from government bodies like NRB, MOF, MOI, and CBS, and econometric tools are applied for analysis. Limitations include reliance on secondary data and a study period of 25 years. The study underscores the need for an investor-friendly environment to attract foreign investments and addresses the challenge of accumulating capital domestically. Recognizing the indispensable role of FDI in Nepal's economic development, the study provides insights for policymakers and recommends investment-friendly policies to promote FDI inflows and contribute to economic growth.

Income Inequality and Economic Growth in Nepal

The trade-off between economic growth and income inequality is a subject widely discussed within Economics. Several studies have revealed different relationships while using various methods. This study used data from 1986-2021 for Nepal to reveal the relationship between economic growth and income inequality. The ADF test was used in the beginning to test for unit roots. Then, the study employed Ordinary Least Squares (OLS) to reveal the parameters. The empirical evidence from the model suggested that economic growth in Nepal, as measured, did not have a significant direct effect on income inequality. Rather, inequality has been persistent over the years in Nepal. Moreover, despite an inverted U-shape being hinted, the data did not provide strong enough evidence to confirm this relationship. As a result, policies targetting income redistribution and reduction of structural inequalities need to be employed to tackle the persistent nature of inequality in Nepal.

Relationship between Capital and Recurrent Expenditure with GDP Growth in Nepal: An Autoregressive Distributed Lag (ARDL) Approach

This study examines the relationship between Capital and Recurrent Expenditure with GDP Growth in Nepal. Employing a multivariate autoregressive distributed lag (ARDL) approach to the data from 1974 to 2020, the empirical findings reveal a strong long-run relationship between recurrent and capital expenditure with the nominal GDP. Interestingly, the impact of recurrent expenditure is higher than that of capital expenditure on GDP in the long run. However, the analysis highlights no clear short-run relationship. The weak short-term relationship observed may be due to the leakage of multipliers and the concentration of a major portion of expenses towards the end of the year. Consequently, the study calls for reforms in the implementation of the government budget, ensuring the even distribution of expenses throughout the fiscal year. Also, the government can increase the efficacy of its spending in the short run by pursuing policies that plug in the leakages of the spending multiplier. The outcomes of this research contribute to the broader discourse on the optimal allocation and implementation process of government resources and provide valuable insights for policymakers in Nepal seeking to bolster economic growth and development.

Good Governance and Economic Growth in Nepal: A Critical Appraisal

The paper seeks to examine the connections between good governance and economic growth in the context of Nepal. In doing so, it attempts to examine Nepal’s existing level of good governance and how it affects economic growth, identify the dificulties Nepal has in promoting good governance, and make recommendations for enhancing good governance and fostering economic growth in Nepal. This paper concludes that Nepal has long grappled with challenges of corruption and weak institutions, which have hampered its ability to thrive economically. One of the biggest challenges to good governance in Nepal is corruption. Corruption can take many forms, including bribery, nepotism, and embezzlement. It can distort the market and discourage investment, leading to slower economic growth. Another challenge to good governance in Nepal is political instability. Despite these obstacles, the paper further concludes that Nepal has improved recently in terms of lowering poverty and increasing access to services, as well as by taking steps to promote the expansion of the private sector. In addition, the paper suggests some measures to cope with corruption and take initiatives for the good governance. By investigating the interplay between good governance and economic growth in the context of Nepal, this study aims to contribute to the existing knowledge base and inform evidence-based policy decisions.

Dynamics of Financial Development and Foreign Direct Investment on Nepal's Economic Growth: A NARDL Analysis

This study explores the asymmetric effects of financial development and foreign direct investment (FDI) on economic growth in Nepal, employing the nonlinear autoregressive distributed lag (NARDL) model. The analysis reveals significant asymmetries in the effects of FDI and financial broadening in the economy by distinguishing between positive and negative shocks, the outcome indicates that positive shocks in financial sector growth significantly boost the economy, while negative shocks have a less pronounced and statistically insignificant effect. Similarly, positive shocks in FDI positively influence GDP per capita growth, whereas negative shocks are statistically insignificant. The robustness of these findings shows stable model parameters. The study underscores the importance of proactive policy measures to harness the positive impacts of financial development and FDI, thereby fostering sustained economic growth in Nepal. These insights contribute to the broader literature by highlighting the need for asymmetric analysis in understanding the complex dynamics of financial development, FDI, and economic growth in developing economies.

Education and Economic Growth in Nepal: An ARDL Approach

Education increases the quality and the quantity of human capital stock. The endogenous growth theory emphasizes the role of education in the economic growth. This study investigates the relationship between education and economic growth in Nepal using time series data from 1986 to 2022 in ARDL model. This study considers GDP growth as the dependent variable and growth in gross fixed capital formation, change in total population of ages 15 to 64, growth in government expenditure on education, school enrollment in secondary level, school enrollment in tertiary level and inflation rate as independent variables. The results show the existence of a long-run relationship between gross fixed capital formation and GDP positively and significantly. The government expenditure on education, school enrollment in secondary level, and inflation have insignificant and negative relation with GDP growth. Total population and school enrollment in tertiary level have positive and insignificant relation with GDP growth. In short run, total population have dynamic effects in Nepalese economy. This study suggests that there should be more studies considering other proxies to support the unavoidable evidence of education as the backbone of any economy.