A study of trans border trade in Parsa district of nepal

Abstract

Trans-border trade refers to the exchange of goods and services between countries across their respective borders. It involves import and export activities, where goods and services across national boundaries to meet the demands of different markets. This study focuses on transborder trade in Nepal from Parsa district, aiming to analyses dynamics n and associated factors. The research objective is to understand the patterns and challenges of trans-border trade and examine the trade imbalance in the district. The study identifies key factors influencing trans-border trade, such as a lack of favorable investment conditions, small land locked country, Labor dispute, lack of expansion and diversification of on trade, lack of suitable and advanced technology, lack of skill and knowledgeable human resource, changing trade policy, unattractiveness of foreign direct investment, political instability, competition with the global market, inadequate focus on industries and low production. To address these challenges, the study recommends a comprehensive approach such as enhancing domestic competitiveness, promoting export-oriented industries, attracting investment, prioritizing the investment sector and providing incentives to attract foreign direct investment. The research methodology adopts a mixed-method approach, combining quantitative and qualitative methods. Field surveys, interviews, Key Informant Interviews (KII), Focus Group Discussions (FGD) and observations are conducted in the Parsa district. Primary and secondary data sources are utilized, and findings are presented through a narrative approach. Structured openended and closed-ended questionnaires are administered to sample of 116 personnel from different sectors. Descriptive and analytical techniques are employed to analyze the data. The research findings a significant trade imbalance in the Parsa district, characterized by heavy dependency on goods. The export trade percentages indicate a relatively low contribution to overall trade, while import trade percentages highlight the district reliance on imported products. This imbalance results in substantial trade deficits. Additionally, the study examines the role of the Armed Police Forcein controlling trade within the Parsa district. The data shows varying percentages of illicit trade captured by the APF, Nepal over the study period, emphasizing their crucial role in reducing illicit trade activities. The findings have implications for policymakers and stakeholders involved in trans-border trade, providing valuable insights to guide decision-making and develop strategies for promoting balanced and regulated trade practices.

Keywords: Trans-border trade, Parsa district, trade imbalance, APF, Nepal, illicit trade