Relationship between Foreign Trade and Economic Growth in Nepal: A Structural Break Analysis

  • Gautam Maharjan Public Youth Campus (Faculty of Management), Tribhuvan University, Kathmandu
Keywords: foreign trade volumn growth, economic growth, trade liberalization

Abstract

This paper aims to assess the impact of foreign trade volume and trade deficit on economic growth before and after trade liberalization in Nepal. The study has used correlation analysis, regression analysis as well as Chow test to analyse the relationship of variables. Similarly, there is a significant impact of foreign trade volume and trade deficit on economic growth before and after the trade liberalization periods as well. Chow test showed that the effect of foreign trade volume and trade deficit on economic growth before and after trade liberalization periods are significant. Finally, it is concluded that the impact of foreign trade volume and trade deficit on economic growth is significantly different before and after trade liberalization in Nepal.

Published
2014-12-10
How to Cite
Maharjan, G. (2014). Relationship between Foreign Trade and Economic Growth in Nepal: A Structural Break Analysis. The Journal of University Grants Commission, 3(1), 11-25. Retrieved from http://jugc.edu.np/index.php/JUGC/article/view/71