Nepalese Economy Research Articles

Barriers to Organizational Change Management in Hotel Industry of Nepal

In initial period, organizational changes are asks for entire hospitality industry. Thus, this research paper reveals what are the barriers for organizational change management in hotel sectors of Nepal which can help them for gaining spark on Nepalese market once again.: Hotels sectors of Nepal are affected by array of factors which can influence organizational performance. This is the component of success for enhancement of performance of hotel sector. Therefore, the purpose of this research is to examine the factors influencing organizational performance in hotel sector of Nepal. This research is based on hotel sector’s organizational changes and the barriers for adaptation of such changes. The study of hotel sector is done with self-structured questionnaire and mostly data are collected from primary sources. To justify the results, researcher has adopted quantitative research design and SPSS software is used for data analysis. The research has identified the essence of organizational changes in hotel sector. In the time of financial plummeted of Nepalese economy, hospitality sector are hardly hit by global pandemic. Thus, hotel sector need new plan and strategies for achieving success. Through organizational changes, hotel sector can slowly and steadily moves business in path of positives. So, hotel sector has to identify barriers of organizational change management and has to act accordingly to achieve success in this critical hour. Nepalese economy after hard hit by global pandemic has slowly started to move in towards path of recovery. To step up Nepalese economy in decent path every sector need to contribute. Hotel sector being the important hub of national GDP has to recover from crises for development of country. Therefore, hotel sector with organizational change management can enhance their profitability. This research in this regard is helpful for Nepalese hotel sector to identify and adopt such changes. This research paper is the summarization of results carried on primary data collected from questionnaire. The research is done on data collected from field so is highly reliable.

The Impact of Trade Deficit in Nepalese Economy

This study aims to explore more information about the economic performance of Nepal and the impact on the economy caused by foreign trade. The trade deficit impacted directly on the financial performance of the country. It affected the GDP of the nation, supply side, interest rate, price of commodities and FDI. The article has discussed the relationship with the major trading partner of Nepal and other countries. Besides this, a quantitative research method was used in this research paper. Information in this article was collected from a secondary source of data. The reliability of this study depended on the reliability of secondary data. The analysis was based on a simple statistical tool. Concerning the methodology, it is based on exploratory data analysis. The comparison has been made in this paper with primary trading partner countries India, China and other countries. This study has found the deficient export performance of Nepal, which has created the problem of rapidly increasing trade deficit. Trade deficit became one of the major causes that lead the national economy to downturn side.

Role of Some Monetary Indicators on Nepalese Economic Growth

This research paper attempts to examine the causal association between major’s Nepalese monetary factors and Gross Domestic Product growth from 1980–2019. To confirm the short-term and long-term contribution of monetary factors to Gross Domestic Product Growth, Johansen approach to cointegration and Error Correction Model has employed and the results have confirmed that the broad money supply and consumer price index positively and significantly affects Gross Domestic Product growth whereas bank rate is seemed to be negatively and significantly effect on Gross Domestic Product growth in Nepalese economy. Moreover, Error Correction coefficient term (-0.4) confirms the emergence of a nexus between the monetary related variables and Gross Domestic Product growth at 40% speed of adjustments towards the equilibrium.

Economic Diplomacy and Its Impact on Nepalese Economy

Economic diplomacy is concerned with how a government maintains economic relations with other nations and what steps it might take to enhance its economy. If economic and diplomatic relations are good, more benefits can be reaped from diplomatic partner countries. Economic diplomacy plays an important role in a country’s ability to prioritize and benefit from deployment partners. By developing economic diplomatic connections, Nepal has the opportunity to profit from the neighboring countries. Despite the differences in the ideology and vision of political parties, it is necessary for the country, the people and development to rise above partisan vision and move forward with a new vision. Reaching more economic benefits from respectable and balanced economic diplomacy has become imperative. This study has been conducted to review economic diplomacy and examine the impact of economic diplomatic relations on foreign direct investment, foreign employment, and the tourism economy. It measured the impact of economic diplomatic relations on FDI, foreign employment and the tourism economy by applying multiple regression models. The impact of FDI, foreign employment and the tourism economy has been analyzed from 2001 to 2019. The study’s finding shows that there has been a significant impact on remittance income and incomes from the tourism industry.

Deficit Budget and Economic Growth in Nepal

This article attempts to identify the relationship between budget deficit and economic growth in Nepal. A deficit budget is associated with the role of government in the economy. On employing the ARDL bounds test on the data set from 1990 to 2020, it is found that there is a long-run relationship between the budget deficit and economic growth. The bound test and error correction term specify a long-run relationship between the Nepalese economy’s budget deficit and economic growth. According to the empirical study, the budget deficit significantly impacts real GDP, a proxy for economic growth.

The Effect of Covid-19 on Remittance Economy of Nepal

Remittance in Nepal before the Covid-19 outbreak was the largest source of microeconomic stability since it has contributed 26 percent of the total Gross Domestic Product. Indeed, it is a principal income of the workers’ household since 55.8 percent of the Nepalese households have been receiving it. As expected, the potential inflow of remittance after Covid-19 decreased massively and it has an unprecedented adverse effect on the overall Nepalese economy, downsizing from national-level income to everyday living patterns of rural Nepal. The paper aims to analyses the present economic condition based on qualitative review. It is a qualitative review of the literature presented in reference. This study has scrutinized the primary level effects of Covid-19 in the remittance economy and figured out its chain of effects on key socioeconomic elements. Moreover, this study has revealed the role of remittance in Nepal and its primary level potential effects from the national level to the socio-economic life of rural Nepal. The reports published from Nepal Rastra Bank, Ministry of Finance, other authoritative agencies, and previous research works have been appraised.

Impact of COVID-19 On Nepalese Economy

The worldwide pandemic of COVID-19 has caused human losses and severely affected the global economy and passing in a turmoil situation. The COVID 19 pandemic is having a significant economic as well as health impact in Nepal. The economy of Nepal is also grappled by the severe public health crisis of the Covid19. As the public health emergency is heavily interconnected with economic affairs, it has impacted each of the pillars of the economy. This article focuses on COVID19 impact on economic growth in Nepal. The main purpose of this paper is to make evaluations of the potential impact of the COVID-19 pandemic on the economy of Nepal has resulted in historically the highest agriculture, remittance unemployment and biggest fall in GDP.
 Int. J. Soc. Sc. Manage. Vol. 8, Issue-2: 348-351

Nepal at the edge of sword with two edges: The COVID-19 pandemics and sustainable development goals.

Humanity has been threatened by pandemics since several decades with devastating effects on all human activities including the economy, and environment. Currently, the world is reeling from the COVID-19 pandemic. The COVID-19 pandemic has been a major threat to the livelihood of billions of people worldwide. Nepal is not an exception to this and has been seriously threatened by the COVID-19 pandemic. The thousands of the peoples who depend on daily wages to join hand to mouth has been under the brunt of the COVID-19 pandemic because of job loss, disruption in the food supply chain. Also, the COVID-19 pandemic has thwarted Nepal's targets to achieve UN Sustainable Development Goals including an unprecedented state of vulnerability to hunger and poverty in the country. Though some informal shreds of evidence have reported the negative impacts of COVID-19 on Sustainable Development Goals, none of the scientific literature has been available regarding such impacts in Nepal yet. This review aims to synthesize extant literature that reports the effects of COVID-19 on the Nepalese economy and implications for achieving UN Sustainable Development Goals.We found that the COVID-19 pandemic has created unprecedented challenges to achieve the country's committed United Nation's Sustainable Development Goals for Nepal. Further, the COVID-19 pandemic has created a unique “income shock” that is supposed to precipitate household food insecurity in developing economy like Nepal. Our review indicated that the percentage of populations below poverty could rise even more than the present national reported value of 18% in the post-pandemic era. We emphasized generating employment and income-earning opportunities to build a resilient food system. Further, we urged to build international consensus to reset and rethink the course of sustainable development goals.

Role of Cooperatives for Sustainable Livelihood in Bagmati Province, Nepal

The study aims in analyzing the role of cooperatives for sustainable livelihood of people in Bagmati Province (3), in Nepal. Cooperatives areconsidered to be the third pillar of Nepalese economy. The ongoing literature suggests that the cooperative movements have relationship with quality of work life of people and poverty reduction. Nepal is developing her future prosperity and growth. Hence, the study has pointed out the gap in the literature and the practice. The descriptive and analytical research designs have been adopted in the study. The secondary source has been used to collect the data. The MS Excel Software has been used to tabulate and analyze the data. The study found that the cooperative movement is more prone in Bagmati and Gandaki Province that resulted decrease in poverty rate and the increase in the employment rate. The activities of the cooperatives in the investment in share, saving, lending and employment creation hadcontributed in the sustainable livelihood of people in Bagmati Province, Nepal. .

Contribution of Tourism Industry in Nepal: Measuring Its Economic Impact

This research paper is concern with the economic impact of tourism industry in Nepalese economy. Tourism industry is multi-industry and multi-product and tourist demand is complementary and has to be met by a number of goods and services, which are not only spatially disparate but also functionally different. The tourist product is of a highly perishable nature and the bulk of tourist facilities have an in-built inflexibility. It initially reviews the concert and using a model, it deals with the factors affecting the economic impacts associate with tourism. The economic impact is measured in terms of direct employment, foreign exchange earnings, GDP and government royalty due to the flow of total tourists arrival of tourists in different fiscal years by using linear regression model and correlation. Results reveal that there is positive economic impact of tourism industry in Nepalese economy.

The Covid-19’s Negative Impacts on Nepalese Economy with a South Asian Perspective: Strategic Response on Post Pandemic Control

The paper investigated and explored experts’ opinions regarding the post-pandemic control strategies within the South Asian perspective to make the Nepalese economy robust. The study was based on qualitative methods of analysis and the method of the study had been classified into two parts: Primary & Secondary. For secondary, data were collected through published reports, journal articles, the daily national newspaper, media, and Television coverage & personal observation, and experience. Whereas, for primary data, the study was carried out considering the way to control the post-pandemic effects on developing economies particularly in Nepal. The result of the study depicted that the post control of covid-19 effects on economic revival policies should prioritize sectorial concerns on the agriculture and industry sector of the economy over service sector and remittance. Therefore, for the pandemic recovery issue, the government and private sector’s role is to jointly solicit a model Public, Private, Partnership for the firm relief of economic stability. Thus, the paper concluded that there is an urgent need to prepare the post control strategy to minimize economic vulnerability. In this situation, Nepal needs strategies for good governance rather than a complex and mysterious plan.

A comparative study of contribution of fdi and domestic industrial investment in nepalese economy

This study has been conducted for the comparative study of contribution of foreign direct investment and domestic investment in Nepalese economy. For this theoretical analysis, different research studies have studied to draw the fundamental issues of effect of FDI and domestic industrial investment in the economy. The simple linear regression model has been applied to measure the impact of FDI and domestic investment on GDP and industrial GDP as well as employment. The contribution of FDI and domestic industrial investment has been analyzed by taking the data of 20 years during the period of 2000/01-2019/20. There has been significant contribution of FDI and domestic industrial investment in Nepalese economy. The results show that there are significant positive relationship between FDI and domestic industrial investment on GDP, industrial GDP and employment in the study periods.

Assessing the bilateral economic relations of Nepal and India: It's role in nepalese economy

Nepal and India are the nearest neighborhood countries and India is also the biggest development partner of Nepal. Both countries have been enjoying excellent bilateral relations in political, economic, trade and tourism as well as culture and India has been extending economic and technical support to Nepal after 1951.Both countries respect the spirit of real friendship and mutual support. Two countries have enjoyed and fruitful bilateral relations characterized by amity and goodwill, equally and harmony and mutual support and cooperation. They pursuit of social and economic development by exchanging cooperation in trade, tourism, investment and connectivity, building human capital and infrastructure and deepening people to people relations is at the center of Nepal-India bilateral relations. This paper has been conducted to examine the economic impact of bilateral economic relations of Nepal and India. The economic impact of bilateral economic relations of Nepal and India has been analyzed in terms of Indian economic assistance, FDI inflows of Nepal from India, trade of Nepal with India and tourist arrivals from India. Descriptive and analytical research design has been applied to analysis the data by using simple statistical tools by using natural log. The results show that there have been positive influences on Nepalese economy with bilateral economic relations of India.

Impossible trinity in a small open economy: A state-space model informed policy simulation

Should monetary policy independence be maintained when the exchange rate is fixed under closed capital account conditions in a small open economy? We apply the Kalman filter at State Space model to test the Nepalese economy’s policy trilemma condition involving restricting capital flow, maintaining policy independence and fixing the exchange rate over the period 1989-2019. Accounting for two-thirds of Nepal’s total trade, Nepal is heavily trade-dependent to India in South Asia, which underwent economic liberalisation during the early 1990s. We modify the traditional Taylor-rule-based monetary policy reaction function to more closely represent Nepal’s economic characteristics by mixing backward-looking and forward-looking strategies and incorporating a fixed exchange rate in the monetary policy reaction function. The simulation results provide strong evidence of policy trilemma failure and inevitable policy trade-offs. In the monetary policy reaction function of both domestic and foreign conditions, the parameter value of domestic condition needs to be close to zero, to get the simulated interest rate close to observed. The loss of monetary policy independence raises a range of policy issues for the Nepalese economy: the rationale for fixing the exchange rate, and the efficacy of capital account closure which might deteriorate the effectiveness of monetary policy.

Collaboration of Industry and Academia – A Game Changer for Nepalese Economy

Collaboration of Industry and Academia – A Game Changer for Nepalese Economy

Analyzing the Economic Impact of Foreign Employment on Development Prospective of Nepal

Foreign employment has become one of the major sources of households’ income for Nepalese society. Nepal has become one of the major labors exporting country. After 1990s, remittance is playing a crucial role for foreign currency earnings and favorable impact on balance of payment situation, to reduce the number of people in the country below the poverty line and ultimately to the economic growth of the nation. This paper tries to examine the economic impact of foreign employment on remittance as well analyze the growth and trends of foreign employment and remittance on development prospective in Nepalese economy. Some descriptive statistics such as percentage, ratio, pie-chart, bar diagram and line chart are used to explain the growth and trends of foreign employment as well as situation of remittance in Nepal. Correlation and linear regression model are used to analyze the impact of foreign employment on remittance. The inflow of remittance growth rate has positive association along with significant contribution of remittance to Gross Domestic Product in Nepalese economy. Also, foreign employment has important effect on remittance. Foreign employment is one of the effective instruments for poverty alleviation and social changes.

Tax Revenue Productivity on Nepalese Economy

This paper seeks to examine the productivity of Tax Revenue (TR) in the Nepalese economy. It, therefore, analyzes the impact of TR on GDP in aggregate level. This study adopts explanatory research design and attempts to determine the relationship between TR and the GDP. Exchange rate, market capitalization money supply and government spending being the intervening variables included in the model. In order for the specification of a model of co integrated regression model with a time series data of the variables are employed for the study period of 20 years, from 1999/2000 to 2018/19. The values of all the variables are converted into real price (constant price) by GDP deflator. The GDP deflator and CPI year 2013/14 have been assumed equivalent to the base year 2013/14 according to Nepalese fiscal year. Since it is observed that residuals are not normally distributed, autocorrelation and multi-co linearity problem in the model, it is necessary to improve the non-normal distribution, autocorrelation and multi-co linearity problem in the model. Therefore, the data are transposed into first difference and run the model with error correction model (ECMt-n). The R2 shows that the explanatory power of the model, indicating that the variation of GDP is explained to the extent of 81 percent variation of the independent variable included in the model. The estimated coefficient of TR in error correction model shows that one percent point rise in TR has led to0.17645 percent point increase in real GDP in short run, whereas it is found 0.21364 percent point in the long-run. This is supported by (World bank, 2003, 2007, 2018) using a large sample of developing countries observed over the period 1980-2006, and even after factoring in the endogeneity of tax revenue.

Assessing the COVID-19 and Its Shocks on Macro-economic Variables in Nepal

This study assesses the COVID-19 and its shocks on macro-economic variables in Nepalese economy based on the secondary data sets of macroeconomics variable pre- and post-COVID-19 by applying descriptive statistical methods. The growth of COVID-19 is unpredictably spreading all over the world. Its hot spot has been in the South Asia, particularly in Delhi and Nepal. Its correlation between COVID 19 cases and per capita GDP is positive. In South Asia, its growth rate is higher than its recovery indicating inefficiency of health system. Similarly, its shocks are so strong to influence trend, pattern and structure of macro-economic variables. Economic growth declined at 0.1percent in 2020 with falling outputs of agriculture, industry and service sectors. Unemployment rate reaches at 27.8 percent from 11.4 percent. The poor population increased by 7.47 percent. Besides, residential income and household income has fallen along with sharp decline in labor and remittance income. Lastly, its negative implication is found in foreign exchange reserve and balance of payment, trade and revenue. Thus, the COVID-19 and its shocks are undesired fluctuations and impose implications in Nepalese economy. Therefore, Nepal should improve health care system and vaccine availability for reducing the effects of pandemic and the lockdown for stability and recovery of the economy and also for welfare of the poor.

Changing Pattern of Employment in Nepal

Employment is for livelihood and securing the lives of people. Unemployment is most raised issue in Nepalese economy but remaining unsolved. Poverty reduction and employment creation had been raised in each past periodic plan. Study was done to assess the changing pattern of employment for analyzing the sectoral involvement of labour force, efficacy of policies, strategies and implication of policies for addressing the labour and migration issues in Nepal. Relevant secondary data from different sources were used for the study. Study shows youth unemployment rate is decreasing. About 66% of the total employment is dependent on agricultural sector which is in the decreasing rate as the slow transformation of agriculture- based economy to modern economy. Around 56% of household receives the remittance, inflow of remittance is in increasing trend to fiscal year 2016/2017 but it shrinks in 2017/2018. Bagmati and Karnali province had higher and lower number of working age population respectively.Similarly, greater unemployment rate found in Province 2. In first eight months of the Fiscal year 2017/18, 12,622 people have been provided the orientation training and 658 people have been provided skill-based training through youth and Small Entrepreneurship Self-employment Programs. Government launched Prime Minister Employment Program (PMEP) at national level in fiscal year 2019/2020. Vicious cycle of remittance, poor sectoral growth, low labor productivity, poor policy implementation are key factors for unemployment. There is urgent need for domestic job to absorb labour force. Youth and marginalized community targeted program, skill development and enhancement program should be emphasized from government level.

Impact of Corona Virus pandemic on Different sectors of Nepalese Economy

Novel coronavirus (COVID-19) causing persistent drumbeat of positive tests and reported deaths across the globe, has created widespread crisis in Nepal as well. The crisis has already led into an economic and labour market shock, impacting both on demand and supply chain. Due to the outbreak of this deadly coronavirus, Nepal has started to suffer the most abrupt and widespread cessation of economic activity. The goal of this paper is to study the emerging and rapidly growing literature on the impact of COVID-19 on various economic and social sectors and to synthetize the insights emerging from a very large number of studies. This study summarizes the literature on the socio-economic consequences of corona virus and consequent lockdown imposed by government on Nepal. This study revealed that COVID-19 has negatively impacted macro economy of country lowering national GDP, decreasing revenue collection, slowing economic growth rate, decreasing wage rate, price inflation and causing loss of employment opportunities. The study showed that almost every sector of socio-economics has been slowed down that adversely effect on country’s economy. The effect are identified on Remittance, Labour and Employment, Tourism, Education and Agriculture (Dairy, vegetables and Poultry) .The uncertain impact of the COVID-19 pandemic on Nepal’s social economy will magnify depending on how events unfold on three fronts; i) its dependence on tourism, trade, and foreign employment and the consequences that will propagate through the services and industrial landscape; ii) if or when the spread of the pandemic overwhelms a grossly inadequate health infrastructure and antivirals or vaccine become available and iii) Nepal’s heavy geo-economic reliance on India and China, and the nature of contagion in those countries.