IDEAS home Printed from https://ideas.repec.org/a/rfa/aefjnl/v6y2019i5p92-103.html
   My bibliography  Save this article

Exports Performance of Nepal: What Can Be Done?

Author

Listed:
  • Ramesh C. Paudel

Abstract

What can be done to improve the export performance of Nepal? is an important question as the Nepal¡¯s progress on export is not satisfactory. Yes, the performance has not met the expectation of the stakeholders and even of the policymakers. In addition to the detailed descriptive analysis, I use a standard gravity modelling technique to answer this question using SITC, 5 digits data for the period 2005-2018. The econometric estimation results suggest that, Nepal could not gain meaningfully from its earlier steps in the liberalization and reform procedures rather its loosing export position. To come out from this situation, the estimated results suggest that Nepal¡¯s should focus on some products that have high-value to weight targeting to reduce the transportation costs meaningfully. Nepal should adopt specific strategies, such as, build trade and manufacturing-focused infrastructure, initiate for bilateral trade agreements, improve the quality of the governance side by side of the reform process and second generation reform programs, tie up the education with national production system, and adjust the exchange rate system making more export friendly.

Suggested Citation

  • Ramesh C. Paudel, 2019. "Exports Performance of Nepal: What Can Be Done?," Applied Economics and Finance, Redfame publishing, vol. 6(5), pages 92-103, September.
    • Handle: RePEc:rfa:aefjnl:v:6:y:2019:i:5:p:92-103
    as

    Download full text from publisher

    File URL: http://redfame.com/journal/index.php/aef/article/view/4413/4607
    Download Restriction: no
    File URL: http://redfame.com/journal/index.php/aef/article/view/4413
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. de Sousa, José, 2012. "The currency union effect on trade is decreasing over time," Economics Letters, Elsevier, vol. 117(3), pages 917-920.
    2. Paudel, Ramesh C. & Burke, Paul J., 2015. "Exchange rate policy and export performance in a landlocked developing country: The case of Nepal," Journal of Asian Economics, Elsevier, vol. 38(C), pages 55-63.
    3. Christopher GRIGORIOU & Céline CARRERE, 2008. "Landlockedness, Infrastructure and Trade:New Estimates for Central Asian Countries," Working Papers 200801, CERDI.
    4. Sharma, K., 2000. "Liberalization and Structural Change: Evidence from Nepalese Manufacturing," Papers 812, Yale - Economic Growth Center.
    5. Alberto Behar & Anthony J. Venables, 2011. "Transport Costs and International Trade," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 5, Edward Elgar Publishing.
    6. Borchert, Ingo & Gootiiz, Batshur & Grover, Arti & Mattoo, Aaditya, 2012. "Landlocked or policy locked ? how services trade protection deepens economic isolation," Policy Research Working Paper Series 5942, The World Bank.
    7. van Bergeijk,Peter A. G. & Brakman,Steven (ed.), 2010. "The Gravity Model in International Trade," Cambridge Books, Cambridge University Press, number 9780521196154, January.
    8. David Hummels, 2007. "Transportation Costs and International Trade in the Second Era of Globalization," Journal of Economic Perspectives, American Economic Association, vol. 21(3), pages 131-154, Summer.
    9. Helleiner, Gerald K, 1973. "Manufactured Exports from Less-Developed Countries and Multinational Firms," Economic Journal, Royal Economic Society, vol. 83(329), pages 21-47, March.
    10. Jean-François Arvis & Gaël Raballand & Jean-François Marteau, 2010. "The Cost of Being Landlocked : Logistics Costs and Supply Chain Reliability," World Bank Publications - Books, The World Bank Group, number 2489.
    11. Grigoriou, Christopher, 2007. "Landlockedness, infrastructure and trade : new estimates for central Asian countries," Policy Research Working Paper Series 4335, The World Bank.
    12. Kishor Sharma, 2001. "Liberalization, growth and structural change: evidence from Nepalese manufacturing," Applied Economics, Taylor & Francis Journals, vol. 33(10), pages 1253-1261.
    13. Michael Faye & John McArthur & Jeffrey Sachs & Thomas Snow, 2004. "The Challenges Facing Landlocked Developing Countries," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 5(1), pages 31-68.
    14. 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.
    15. J. M. Finger & A. J. Yeats, 1976. "Effective Protection by Transportation Costs and Tariffs: A Comparison of Magnitudes," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 90(1), pages 169-176.
    16. Menon, Jayant & Srinivasan T.N., (ed.), 2017. "Integrating South and East Asia: Economics of Regional Cooperation and Development," OUP Catalogue, Oxford University Press, number 9780199474127.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ramesh Chandra Paudel & Tara Prasad Bhusal, 2021. "Role of Workers Remittances in Export Performance of Nepal: Gravity Modelling Approach," NRB Economic Review, Nepal Rastra Bank, Economic Research Department, vol. 33(1-2), pages 1-13, October.
    2. Margarita Navarro-Pabsdorf & Eduardo Cuenca-Garcia & Estela Quiros-Gonzalez, 2024. "The Impact of Foreign Trade in the Graduation Process of Asian Least-Developed Countries (LDCs)," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 13745-13779, September.
    3. Rohan Byanjankar & Mira Sakha, 2021. "Role of Remittances on Rural Poverty in Nepal-Evidence from Cross-Section Data," NRB Economic Review, Nepal Rastra Bank, Economic Research Department, vol. 33(1-2), pages 45-72, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Lahiri, Bidisha & Masjidi, Feroz K., 2012. "Landlocked Countries: A Way to Integrate with Coastal Economies," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 27, pages 505-519.
    3. Bakar Normizan & Ishii Yasunori, 2014. "Export Competition between Landlocked and Coastal Countries: An Analysis of Strategic Export Policies," Review of Development Economics, Wiley Blackwell, vol. 18(4), pages 804-812, November.
    4. Delgadillo Chavarria, Carlos Bruno, 2019. "El Efecto de la Mediterraneidad sobre el Flujo Comercial Internacional: Evidencia Empírica Internacional y para América del Sur (1990-2016) [The Effect of Landlocked Country Status on International," MPRA Paper 96294, University Library of Munich, Germany, revised 10 Sep 2019.
    5. Ryuichi Shibasaki & Satoshi Tanabe & Hironori Kato & Paul Tae-Woo Lee, 2019. "Could Gwadar Port in Pakistan Be a New Gateway? A Network Simulation Approach in the Context of the Belt and Road Initiative," Sustainability, MDPI, vol. 11(20), pages 1-28, October.
    6. Delgadillo Chavarria, Carlos Bruno, 2019. "El Efecto de la Mediterraneidad sobre el Flujo Comercial Internacional: Evidencia Empírica Internacional y para América del Sur (1990-2016) [The Effect of Landlocked Country Status on International," MPRA Paper 96093, University Library of Munich, Germany, revised 10 Sep 2019.
    7. Rosmaiza A. Ghani & Michael P. Cameron & William Cochrane & Matthew Roskruge, 2019. "A Gravity Model Estimation of the Bi-Directional Relationship between International Trade and Migration," Working Papers in Economics 19/02, University of Waikato.
    8. Christian Volpe Martincus, 2016. "Out of the Border Labyrinth: An Assessment of Trade Facilitation Initiatives in Latin America and the Caribbean," IDB Publications (Books), Inter-American Development Bank, number 96856, February.
    9. Prema-chandra Athukorala & Tala Talgaswatta & Omer Majeed, 2017. "Global production sharing: Exploring Australia's competitive edge," The World Economy, Wiley Blackwell, vol. 40(10), pages 2172-2192, October.
    10. Anna Golovko & Hasan Sahin, 2021. "Analysis of international trade integration of Eurasian countries: gravity model approach," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 11(3), pages 519-548, September.
    11. Michael Jetter & Saskia Mösle & David Stadelmann, 2017. "Landlockedness and Economic Development: Analyzing Subnational Panel Data and Exploring Mechanisms," CESifo Working Paper Series 6733, CESifo.
    12. Volpe Martincus, Christian, 2016. "Out of the Border Labyrinth: An Assessment of Trade Facilitation Initiatives in Latin America and the Caribbean," IDB Publications (Books), Inter-American Development Bank, number 7994, November.
    13. repec:idb:brikps:7994 is not listed on IDEAS
    14. Gonzáles Argote, Heynz Roberth & Ticona Gonzáles, Ulises Amaru, 2019. "Clustering, mediterraneidad y comercio internacional: aplicación empírica de los algoritmos Partitioning Around Medoids y K-means," Revista Latinoamericana de Desarrollo Economico, Carrera de Economía de la Universidad Católica Boliviana (UCB) "San Pablo", issue 32, pages 96-130, November.
    15. Carballo, Jerónimo & Schaur, Georg & Graziano, Alejandro & Volpe Martincus, Christian, 2016. "Transit Trade," IDB Publications (Working Papers) 7688, Inter-American Development Bank.
    16. Enrico Pastori & Miriam Tagliavia & Enrico Tosti & Simonetta Zappa, 2014. "The survey on international freight rates in Italy: methods and results," Questioni di Economia e Finanza (Occasional Papers) 223, Bank of Italy, Economic Research and International Relations Area.
    17. Guillaume Daudin & Jérôme Héricourt & Lise Patureau, 2022. "International transport costs: new findings from modeling additive costs [Inventories, lumpy trade, and large devaluations]," Journal of Economic Geography, Oxford University Press, vol. 22(5), pages 989-1044.
    18. Kox, Henk L.M. & Rojas Romasgosa, Hugo, 2019. "Gravity estimations with FDI bilateral data: Potential FDI effects of deep preferential trade agreements," MPRA Paper 96318, University Library of Munich, Germany.
    19. Abban, Stanley & Ofori-Abebrese, Grace, 2019. "The Prospect Of ECOWAS Currency Union On Intra-Regional Trade," MPRA Paper 102226, University Library of Munich, Germany.
    20. Burgoa, Rodrigo, 2011. "Consecuencias económicas del enclaustramiento marítimo sobre las exportaciones bolivianas [Landlockedness Economic Impact upon Bolivian Exports]," MPRA Paper 59904, University Library of Munich, Germany.
    21. Michael A. Clemens & Claudio Montenegro & Lant Pritchett, 2016. "Bounding the Price Equivalent of Migration Barriers," Growth Lab Working Papers 67, Harvard's Growth Lab.

    More about this item

    Keywords

    exports performance; trade models; landlocked countries; high-value to weight products;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rfa:aefjnl:v:6:y:2019:i:5:p:92-103. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Redfame publishing (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.