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Liberalization, growth and structural change: evidence from Nepalese manufacturing

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  • Kishor Sharma

Abstract

This paper presents an empirical analysis of the consequences of liberalization on industrial structure in Nepal, a least developed country with weak institutions and severe infrastructure bottlenecks. Results suggest some structural change in manufacturing output and trade orientation which appears to be due to a change in incentive structure, but no significant improvements were recorded in total factor productivity growth which is of central importance for a least developed country like Nepal. Export intensity rose significantly in the postliberalization period despite poor productivity performance of export-oriented industries while import intensity fell due mainly to improved competitiveness in import competing industries and a fall in imports for smuggling to India.

Suggested Citation

  • Kishor Sharma, 2001. "Liberalization, growth and structural change: evidence from Nepalese manufacturing," Applied Economics, Taylor & Francis Journals, vol. 33(10), pages 1253-1261.
    • Handle: RePEc:taf:applec:v:33:y:2001:i:10:p:1253-1261
    DOI: 10.1080/00036840010004013
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    References listed on IDEAS

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    1. Sharma, Kishor, 2000. "Liberalization and Structural Change: Evidence from Nepalese Manufacturing," Center Discussion Papers 28394, Yale University, Economic Growth Center.
    2. John W. Kendrick, 1973. "Postwar Productivity Trends in the United States, 1948–1969," NBER Books, National Bureau of Economic Research, Inc, number kend73-1, February.
    3. Sharma, K., 2000. "Liberalization and Structural Change: Evidence from Nepalese Manufacturing," Papers 812, Yale - Economic Growth Center.
    4. Kishor Sharma, 2000. "Liberalization and Structural Change: Evidence from Nepalese Manufacturing," Working Papers 812, Economic Growth Center, Yale University.
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    1. Prema-chandra Athukorala & Kishor Sharma, 2004. "Foreign Investment in a Least Developed Country: The Nepalese Experience," ASARC Working Papers 2004-05, The Australian National University, Australia South Asia Research Centre.
    2. repec:kqi:journl:2017-1-4 is not listed on IDEAS
    3. Hakimi, Abdelaziz & Hamdi, Helmi, 2016. "Trade liberalization, FDI inflows, environmental quality and economic growth: A comparative analysis between Tunisia and Morocco," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 1445-1456.
    4. Edward Oczkowski & Kishor Sharma, 2005. "Determinants of Efficiency in Least Developed Countries: Further Evidence from Nepalese Manufacturing Firms," Journal of Development Studies, Taylor & Francis Journals, vol. 41(4), pages 617-630.
    5. 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.
    6. Sharma, Kishor, 2006. "The political economy of civil war in Nepal," World Development, Elsevier, vol. 34(7), pages 1237-1253, July.
    7. Bopage Lionel & Sharma Kishor, 2014. "Trade Liberalization and Productivity Performance: Evidence from the Australian Passenger Motor Vehicle Industry," Global Economy Journal, De Gruyter, vol. 14(3-4), pages 467-485, October.
    8. Prakash Kumar Shrestha, 2017. "Economic Liberalization in Nepal: Evaluating the Changes in Economic Structure, Employment and Productivity," Journal of Development Innovations, KarmaQuest International, vol. 1(1), pages 60-83, February.

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