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Analysis of the Economic Impact of Improved Connectivity in Nepal

Author

Listed:
  • Tadateru Hayashi
  • Satoru Kumagai
  • Sanchita Basu Das
  • Manbar Singh Khadka
  • Ikumo Isono
  • Souknilanh Keola
  • Kenmei Tsubota
  • Kazunobu Hayakawa

Abstract

This study has estimated the economic impacts of ongoing and future infrastructure development projects in Nepal by using the geographical simulation model developed by the Institute of Developing Economies (IDE-GSM). The IDE-GSM is a computational general equilibrium model based on spatial economics. The simulation analysis reveals that ongoing infrastructure development projects in Nepal benefit the country’s economy and that the planned connectivity improvement with India will have a positive impact, with an anticipated major shift in the mode of transport for trade. JEL Classification: C68, F17

Suggested Citation

  • Tadateru Hayashi & Satoru Kumagai & Sanchita Basu Das & Manbar Singh Khadka & Ikumo Isono & Souknilanh Keola & Kenmei Tsubota & Kazunobu Hayakawa, 2023. "Analysis of the Economic Impact of Improved Connectivity in Nepal," Journal of Asian Economic Integration, , vol. 5(2), pages 145-166, September.
    • Handle: RePEc:sae:jfasei:v:5:y:2023:i:2:p:145-166
    DOI: 10.1177/26316846231182178
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    References listed on IDEAS

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    More about this item

    Keywords

    Nepal; IDE-GSM; simulation analysis; CGE model;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

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