Government spending on transport and communication and economic growth in Nepal
Date
2023
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Department of Economics
Abstract
The objectives of this study is to analyze the trends of transport and communication capital
expenditures of Nepal, and to evaluate the relationship between government capital spending on
transport and communication and its impact on real GDP in Nepal. It applied regression techniques
with domestic time series annual data sets for the period 1990 to 2021. Data and measurement
issues are addressed. Summary statistics, partial correlations, and unit root test are carried out
along with t, F, R- squared, adjusted R-squared and DW statistics to find out accurate coefficients
of estimated regression equation. The results showed that government capital expenditures on
transport sector has significant positive effect on real GDP of Nepal along with the control
variables broad money supply, total trade and gross capital formation. However, the impact of
capital expenditures on communication sector was insignificant. To increase economic growth,
government capital expenditures on transport sectors were friendlier in Nepal.
Description
Keywords
Capital expenditure, Transport sector, Communication sector, Economic growth