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Trade Policy, Poverty and Inequity in Nepal

Author

Listed:
  • Kishor Sharma

    (Kishor Sharma is at the School of Management, Charles Sturt University, Wagga Wagga, NSW, Australia. E-mail: ksharma@csu.edu.au I thank an anonymous referee for useful suggestions.)

Abstract

The debate about the effects of globalization on poverty and inequity has attracted public attention in recent years in both developed and developing countries. While globalization has contributed to a rapid expansion in world output and trade, poverty remains a major development challenge, particularly in LDCs. Using the experience of Nepal this paper sheds light on this debate. Our analysis suggests that in Nepal the poor have not benefited much from global integration. Not only has poverty increased, but income inequality has also grown rapidly since the country embarked on policy reforms. The magnitude of poverty is higher in rural than in urban areas. Urban poverty has reduced mainly due to growth in labour-intensive manufacturing exports—motivated by the GSP quota—and an expansion in service related activities. Rural poverty appears to be linked with poor agricultural productivity.

Suggested Citation

  • Kishor Sharma, 2005. "Trade Policy, Poverty and Inequity in Nepal," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 6(2), pages 241-250, September.
    • Handle: RePEc:sae:soueco:v:6:y:2005:i:2:p:241-250
    DOI: 10.1177/139156140500600205
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    References listed on IDEAS

    as
    1. Kishor Sharma, 2004. "The Impact of Policy Reforms on Labour Productivity, Price Cost Margin and Total Factor Productivity: The Nepalese Experience," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 5(1), pages 55-68, March.
    2. Sharma, Kishor & Oczkowski, Edward & Jayasuriya, Sisira, 2001. "Liberalization, export incentives, and trade intensity: new evidence from Nepalese manufacturing industries," Journal of Asian Economics, Elsevier, vol. 12(1), pages 123-135.
    3. Raghbendra Jha (ed.), 2005. "Economic Growth, Economic Performance and Welfare in South Asia," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-52031-8, March.
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