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Electricity Consumption and Export Performance: Evidence from Nepal

Author

Listed:
  • Ramesh C. Paudel

    (Central Department of Economics, Tribhuvan University, Kirtipur, Kathmandu, Nepal,)

  • Resham Thapa-Parajuli

    (Central Department of Economics, Tribhuvan University, Kirtipur, Kathmandu, Nepal,)

  • Majed Alharthi

    (Department of Finance, College of Business, King Abdulaziz University, Rabigh, Saudi Arabia.)

Abstract

This paper, noting positive marks due to regular supply of electricity and increased consumption of its, examines the role of electricity consumption in export performance of Nepal employing the Autoregressive distributed lag (ARDL) approach of cointegration for the period of 1975-2018. The results show that electricity does have a strong long-run positive relationship with the export performance of Nepal. Therefore, it can be suggested, based on the results, that increasing electricity consumption might increase the exports values. Also, there is a need for building infrastructure to support production activities, not just the means of transportation to reach our villages. Only those infrastructures focused on production activities will contribute to increasing the exports attracting more foreign direct investment in the country.

Suggested Citation

  • Ramesh C. Paudel & Resham Thapa-Parajuli & Majed Alharthi, 2020. "Electricity Consumption and Export Performance: Evidence from Nepal," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 529-535.
    • Handle: RePEc:eco:journ2:2020-06-68
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    References listed on IDEAS

    as
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    3. Jamal Bouoiyour & Refk Selmi, 2015. "Exchange volatility and export performance in Egypt: New insights from wavelet decomposition and optimal GARCH model," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 24(2), pages 201-227, March.
    4. Gregory, Allan W. & Hansen, Bruce E., 1996. "Residual-based tests for cointegration in models with regime shifts," Journal of Econometrics, Elsevier, vol. 70(1), pages 99-126, January.
    5. Serap Coban, 2015. "Does the Financial Development Spur Export Performance? Evidence from Turkish Firm-Level Data," International Journal of Economics and Financial Issues, Econjournals, vol. 5(2), pages 434-440.
    6. Gregory, Allan W & Hansen, Bruce E, 1996. "Tests for Cointegration in Models with Regime and Trend Shifts," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(3), pages 555-560, August.
    7. Ramesh C. Paudel & Arusha Cooray, 2018. "Export performance of developing countries: Does landlockedness matter?," Review of Development Economics, Wiley Blackwell, vol. 22(3), pages 36-62, August.
    8. Ramesh C Paudel, 2014. "Export performance in developing countries: A comparative perspective," Departmental Working Papers 2014-26, The Australian National University, Arndt-Corden Department of Economics.
    9. Ramesh C. Paudel, 2014. "Liberalisation reform and export performance of India," ASARC Working Papers 2014-03, The Australian National University, Australia South Asia Research Centre.
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    Cited by:

    1. Obukohwo Oba EFAYENA & Enoh Hilda OLELE & Ngozi Patricia BUZUGBE, 2022. "Energy consumption and economic growth nexus in Africa: New insights from emerging economies," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(4(633), W), pages 185-196, Winter.

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    More about this item

    Keywords

    Energy; Electricity; Export performance; Nepal;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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