Effect of foreign trade in GDP of Nepal
Date
2023
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Department of Economics
Abstract
This paper examines the effect of foreign trade in GDP of Nepal. The study shows the
linkage between GDP with import, export, and capital expenditure. The objectives of
study are to study the growth trend of foreign trend, capital expenditure and to
examine the relationship between between import, export, capital expenditure and
GDP of Nepal. The Engle Granger Test has been used to examine the long run
relationship between foreign trade and GDP of Nepal in long run. To produce much
reliable result, various econometrics tools were employed to check autocorrelation
function, goodness of fit and stability of the model. The data frequency is annual and
obtained from government sources. The analysis is based on data for the period of
1990/91 to 2020/21.The study concludes that the effect of RGDP on RIM and RCE is
positive while the effect of RGDP on REX is negative.
Description
Keywords
Foreign trade, Engle granger test