Influence of international trade dynamice on nepal's economoc growth

Abstract

This study looks at how trade with other countries affects Nepal’s economic growth from 2004/05 to 2023/24. It focuses on important things like imports, exports, trade balance, trade openness, money sent home by workers abroad, exchange rates, foreign aid, and investment in the country. Using up-to-date data and simple number crunching, the study finds that imports and investments help Nepal’s economy grow the most. However, Nepal has a big problem with trading more products from other countries than it sells, which slows down growth. Exports and opening up trade have only small positive effects because Nepal mostly sells low-value products. Money sent by workers abroad and foreign aid don’t seem to help much because they are mostly used for daily needs, not for growing businesses. Changes in exchange rates help the economy by making exports cheaper and attracting investments. The study shows Nepal needs to focus on selling a wider variety of products, reducing the trade gap, encouraging more investment, and carefully managing exchange rates to grow steadily and help everyone. This research provides useful advice for Nepal’s leaders to make better trade and growth policies.

Keywords: Foreign Trade, Nepal Economy, Macroeconomic