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The Composition of Public Expenditure, Physical Infrastructure and Economic Growth in Nepal

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  • Prakash Kumar Shrestha

    (Nepal Rastra Bank)

Abstract

This paper investigates the role of composition of public expenditure, particularly the expenditure on physical infrastructure, on economic growth in Nepal from the time series perspective based on the endogenous growth model. The impact of public expenditure on economic growth has been found to be positive. Hence, low economic growth in Nepal in recent years can be attributed to low government expenditure on infrastructure. Availability of infrastructure situation is very dismal. Given the sustainable debt scenario, Nepal can go for more investment in infrastructure by external borrowing at least for the medium term.

Suggested Citation

  • Prakash Kumar Shrestha, 2009. "The Composition of Public Expenditure, Physical Infrastructure and Economic Growth in Nepal," NRB Economic Review, Nepal Rastra Bank, Economic Research Department, vol. 21, pages 1-4, April.
    • Handle: RePEc:nrb:journl:v:21:y:2009:p:4
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    References listed on IDEAS

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    Cited by:

    1. Jan, Sajjad Ahmad & Chani, Muhammad Irfan & Pervaiz, Zahid & Chaudhary, Amatul R., 2012. "Physical infrastructure and economic development in Pakistan," MPRA Paper 37785, University Library of Munich, Germany.
    2. Hom Nath Gaire, 2014. "Relevance of Keynesianism in Nepal: An Empirical Analysis," NRB Economic Review, Nepal Rastra Bank, Research Department, vol. 26(2), pages 83-95, October.

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