Browsing by Subject "Financial development"
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Item An assessment of domestic credit to the private sector and export performance of Nepali: A gravity modelling approach.(Department of Economics, 2023) Sinjali Magar, JunuThe trade deficit in Nepal has reached an alarming levels because of the ongoing and growing mismatch between imports and exports. Nepal’s trade deficits are the major concern of Nepal’s economy at present. Despite numerous policy efforts, export performance has fallen short of stakeholders' and policymakers' expectations. In recent years, attention has increased to the ability of the banking sector's credit to the private sector (loanable fund) to increase export performance by bridging the gap between a company's productivity and export status. The objective of this thesis is to document the analysis of domestic credit to the private sector and export performance of Nepal and to examine the association of Domestic credit to the private sector and export performance in Nepal. The gravity model method is used in this study to investigate the relationship between domestic bank credit to the private sector and Nepal's export performance employing data from 1996 to 2019. The study found a significant and favourable association between the domestic credit to the private sector and export performance. The study's conclusions showed that domestic credit to the private sector was statistically significant at a one per cent significance level and had a positive impact on export performance. In a similar manner to this, gravity variables, such as distance and GDP of the trading partner, have a significant relationship with export performance, but even at a 10 per cent level of significance, the population of the trading partner countries is not significant. Additionally, the estimated coefficient for governance is 0.522, indicating a statistically significant relationship between governance and export performance at a one per cent. Financial development improves trade flows by reducing the fictitious gap between productivity and exports, domestic credit should be invested in the manufacturing sector rather than consumption. The Nepali government should support industrial development and the expansion of industries that can replace imported goods.Item Estimating production function using time-series analysis in Nepal(Department of Economics, 2023) Chapagain, BigyanExamining the long-run equilibrium of a country along with identification of significant policy instruments is essential for a developing country like Nepal which has struggled to utilize its production and export potential. A country requires different fiscal and monetary instruments so that long-run equilibrium can be maintained in an economy. Since a growth model includes all the necessary inputs that is required to maintain a long-term growth, this study utilizes an endogenous growth model so that the long-run equilibrium can be assessed and significant determinants of national output can be pointed out. We incorporate time series dataset from 1975 to 2018 obtained from the quarterly bulletin of Nepal Rastra Bank except for export and net import which were taken from Ministry of Finance’s macroeconomic dashboard. We find stable long run equilibrium explaining the economic growth in Nepal. We also find that gross fixed capital formation, export and domestic credit increases national output in the long-run. Thus, it is necessary for a low-income country like Nepal to utilize its investment and production potential in economic growth. Moreover, domestic credit plays an instrumental role to increase the production in Nepal. Even though export accounts for just 3.3% of the GDP as compared to imports (36% of GDP), our results are robust to explain that export is one of the major policy determinants to expand the national output.Item Financial Development and Economic Growth in Nepal(Department of Economics, 2022) Sapkota, KamalNot availableItem Municipality Finance in Nepal:A case study of Janakpur Municipality(Department of Economics, 2014-06) Jha, Janak KumarNot available