Exploring the nexus between economic growth and economic performance in Nepal
This study aims to explore the relationship between economic growth and performance in Nepal, identifying key drivers for growth. Studying the nexus between economic growth and economic performance in Nepal is crucial for understanding how these factors interact within the nation’s specific context....
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LLC "CPC "Business Perspectives"
2023-11-01
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| Series: | Investment Management & Financial Innovations |
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| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/19218/IMFI_2023_04_Upadhyaya.pdf |
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| author | Yadav Mani Upadhyaya Khom Raj Kharel Suman Kharel Basu Dev Lamichhane |
| author_facet | Yadav Mani Upadhyaya Khom Raj Kharel Suman Kharel Basu Dev Lamichhane |
| author_sort | Yadav Mani Upadhyaya |
| collection | DOAJ |
| description | This study aims to explore the relationship between economic growth and performance in Nepal, identifying key drivers for growth. Studying the nexus between economic growth and economic performance in Nepal is crucial for understanding how these factors interact within the nation’s specific context. Growth of gross domestic product (GDP) is represented as the primary indicator for evaluating economic performance, reflecting the overall well-being of a nation's economy. Economic performance encompasses a broader spectrum, including indicators such as employment rate, inflation, income distribution and overall economic stability. Using E-Views 10, a descriptive and analytical research approach has been applied to analyze time series secondary data from 1990–2021 using an econometric model. This study found that faster-growing economies typically experience increased jobs, higher investment, more exports, and often lower inflation. These relationships are part of a long-run equilibrium relationship. In the event of an economic shock disrupting this equilibrium, the economy tends to naturally return to the equilibrium over time. This study found that short-term causality running from lagged GDP, gross capital formation (GCF), exports, human development index (HDI), and employment ratio influence immediate GDP growth. These variables wield a short-term influence over GDP growth; for instance, a sudden surge in exports can prompt a temporary boost in economic growth. This indicates that there is a long-term sustained link between GDP growth and the independent variables rather than merely a short-term event. |
| format | Article |
| id | doaj-art-6bc7875e92204ffb82c10f50ea1aa774 |
| institution | Kabale University |
| issn | 1810-4967 1812-9358 |
| language | English |
| publishDate | 2023-11-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Investment Management & Financial Innovations |
| spelling | doaj-art-6bc7875e92204ffb82c10f50ea1aa7742025-02-03T10:56:40ZengLLC "CPC "Business Perspectives"Investment Management & Financial Innovations1810-49671812-93582023-11-0120431132310.21511/imfi.20(4).2023.2519218Exploring the nexus between economic growth and economic performance in NepalYadav Mani Upadhyaya0https://orcid.org/0000-0003-3089-3615Khom Raj Kharel1https://orcid.org/0000-0002-9806-7224Suman Kharel2https://orcid.org/0000-0002-4675-9157Basu Dev Lamichhane3https://orcid.org/0000-0001-7987-6512PhD., Assistant Professor of Economics, Tribhuvan University, Saraswati Multiple Campus, KathmanduPhD., Associate Professor of Economics, Tribhuvan University, Saraswati Multiple Campus, KathmanduPhD., Associate Professor of Rural Development, Tribhuvan University, Central Department of Rural Development, Kirtipur, KathmanduPhD Scholar, Assistant Professor of Management Tribhuvan University, Saraswati Multiple Campus, KathmanduThis study aims to explore the relationship between economic growth and performance in Nepal, identifying key drivers for growth. Studying the nexus between economic growth and economic performance in Nepal is crucial for understanding how these factors interact within the nation’s specific context. Growth of gross domestic product (GDP) is represented as the primary indicator for evaluating economic performance, reflecting the overall well-being of a nation's economy. Economic performance encompasses a broader spectrum, including indicators such as employment rate, inflation, income distribution and overall economic stability. Using E-Views 10, a descriptive and analytical research approach has been applied to analyze time series secondary data from 1990–2021 using an econometric model. This study found that faster-growing economies typically experience increased jobs, higher investment, more exports, and often lower inflation. These relationships are part of a long-run equilibrium relationship. In the event of an economic shock disrupting this equilibrium, the economy tends to naturally return to the equilibrium over time. This study found that short-term causality running from lagged GDP, gross capital formation (GCF), exports, human development index (HDI), and employment ratio influence immediate GDP growth. These variables wield a short-term influence over GDP growth; for instance, a sudden surge in exports can prompt a temporary boost in economic growth. This indicates that there is a long-term sustained link between GDP growth and the independent variables rather than merely a short-term event.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/19218/IMFI_2023_04_Upadhyaya.pdfeconometric modeleconomic performanceGDPliving standardNepalese economy |
| spellingShingle | Yadav Mani Upadhyaya Khom Raj Kharel Suman Kharel Basu Dev Lamichhane Exploring the nexus between economic growth and economic performance in Nepal Investment Management & Financial Innovations econometric model economic performance GDP living standard Nepalese economy |
| title | Exploring the nexus between economic growth and economic performance in Nepal |
| title_full | Exploring the nexus between economic growth and economic performance in Nepal |
| title_fullStr | Exploring the nexus between economic growth and economic performance in Nepal |
| title_full_unstemmed | Exploring the nexus between economic growth and economic performance in Nepal |
| title_short | Exploring the nexus between economic growth and economic performance in Nepal |
| title_sort | exploring the nexus between economic growth and economic performance in nepal |
| topic | econometric model economic performance GDP living standard Nepalese economy |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/19218/IMFI_2023_04_Upadhyaya.pdf |
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