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Industrialization, input duties and revenue concerns in Nepal

Author

Listed:
  • Paras Kharel

    (South Asia Watch on Trade, Economics and Environment)

Abstract

This paper seeks to contribute to the discourse on industrialization in Nepal. It shows that it would be premature to write off manufacturing-powered industrialization. It emphasizes that the debate over whether protecting domestic industry from import competition as part of an industrialization strategy works or not is far from settled. It discusses Nepal's muddled input-tariff policy for exports, and examines whether there are valid revenue loss concerns behind the anti-export bias of the tariff policy. While existing research on Nepal suggests revenue loss is not significant if tariff elimination is targeted at inputs used by a few key export products, the paper suggests further extensions and lines of inquiry, taking into account alternative scenarios. Finally, it highlights some questions, trade-offs and issues in tariff setting for the Government of Nepal to ponder.

Suggested Citation

  • Paras Kharel, 2020. "Industrialization, input duties and revenue concerns in Nepal," Working Papers wp/20/01, South Asia Watch on Trade, Economics and Environment.
    • Handle: RePEc:saw:wpaper:wp/20/01
    as

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    File URL: https://sawtee.org/publications/WP20_kharel_industrialization-input-duties-and-revenue-concerns-in-Nepal.pdf
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Paras Kharel, 2021. "Nepal's elusive quest for export success meets LDC graduation," Working Papers wp/21/01, South Asia Watch on Trade, Economics and Environment.
    2. Paras Kharel & Kshitiz Dahal, 2021. "Trade Policy Coherence and Coordination in Nepal : An Explanatory Assessment," Research Papers rp/21/01, South Asia Watch on Trade, Economics and Environment.
    3. repec:saw:journl:v:1:y:2021:i:1 is not listed on IDEAS
    4. repec:saw:wpaper:wp/22/01 is not listed on IDEAS
    5. repec:saw:wpaper:rp/22/01 is not listed on IDEAS
    6. Posh Raj Pandey & Paras Kharel & Kshitiz Dahal & Dikshya Singh & Swastik Aryal, 2022. "Nepal's graduation from the LDC category : Implications for international trade and development cooperation," Research Papers rp/22/01, South Asia Watch on Trade, Economics and Environment.

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    More about this item

    Keywords

    Manufacturing; structural transformation; infant industry; liberalization; deindustrialization; industrial policy; trade policy; tariff; revenue loss;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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