TRADE AND EXPORT PROMOTION OF NEPAL

Abstract

The study focuses on the trade and export promotion of Nepal using annual data from FY 2071/72 to FY 2080/81. The main objectives of this study are to access the current situation of trade and export promotion of Nepal as well as to analyze the relationship between export, import and GDP of Nepal. The research design for this study adopts a descriptive and causal comparative research design. The study is based on secondary data which have collected via ministry of finance. Data analysis is conducted using the Statistical Package for the Social Sciences (SPSS) program, applying descriptive statistics and correlation analysis to explore relationship between export, import and GDP. The descriptive analysis shows the GDP and imports have flatter distributions with moderate variability. Meanwhile, exports are slightly more skewed to the right but show less spread. The correlation coefficient (r) value between export and import is a very high positive relationship which indicates that when import increase, export also increased. The high positive correlation between export and GDP which shows that as Nepal’s economy grows, exports are also growing. The correlation between import and GDP shows the imports increase significantly as the economy expands. The research shows that by strengthening export promotion strategies Nepal can promote sustainable economic growth, reduce the trade deficit and increase overall economic growth.