Impact of exchange rate on export of Nepal

Abstract

This study tries to investigate the impact of the exchange rate on the export performance of Nepal. The study has implemented the export relation with the top twenty-five exporting countries for the year 1990-2019 AD. The analysis is conducted using both qualitative and quantitative methods. In quantitative analysis, a simple regression method is employed with total export as the dependent variable, Real effective exchange rate as an independent variable, and GDP, population, time trend, and Maoist as control variables. The finding of the study shows a decrease in the rate of real effective exchange rate is associated with an increase in the rate of export. GDP is positively associated with the level of exports. Maoist armed conflict has a negative impact on the level of exports. Keywords: Export, REER, OLS