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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.

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  • 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. Sharma, K., 2000. "Liberalization and Structural Change: Evidence from Nepalese Manufacturing," Papers 812, Yale - Economic Growth Center.
    3. 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.
    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. 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.
    3. 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.
    4. repec:kqi:journl:2017-1-4 is not listed on IDEAS
    5. 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.
    6. 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.
    7. Sharma, Kishor, 2006. "The political economy of civil war in Nepal," World Development, Elsevier, vol. 34(7), pages 1237-1253, July.
    8. 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.

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