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Liberalization and Structural Change: Evidence from Nepalese Manufacturing

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  • Sharma, K.

Abstract

The consequences of liberalization on structural changes are examined using data from manufacturing industry in Nepal which is classified as a least developed country. This is important because doubts that liberalization may not solve the problems of low-income developing countries remain strong due mainly to low supply elasticities and the early stage of industrialization. Results suggest some structural changes in manufacturing output and trade orientation. However, no significant improvements were recorded in the overall productivity growth and spatial distribution of manufacturing which appear to be due mainly to the lack of basic infrastructure and the shortage of skilled manpower. Thus, appropriate investment policies, which channel resources to improve human capital and infrastructure, appear to be essential if the potential benefits of liberalization are to be fully achieved.

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Bibliographic Info

Paper provided by Yale - Economic Growth Center in its series Papers with number 812.

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Length: 25 pages
Date of creation: 2000
Date of revision:
Handle: RePEc:fth:yalegr:812

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Postal: U.S.A.; YALE UNIVERSITY, ECONOMIC GROWTH CENTER, YALE STATION NEW-HAVEN CONNECTICUT 06520 U.S.A
Phone: (203) 432-3610
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Web page: http://www.econ.yale.edu/~egcenter/
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Keywords: IMPORTS ; EXPORTS ; PRODUCTIVITY ; LIBERALISME;

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Cited by:
  1. 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.
  2. 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.
  3. Rim BEN AYED MOUELHI, 2007. "The Impact Of Trade Liberalization On Tunisian Manufacturing: Structure, Performance And Employment," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 25, pages 87-114.
  4. Sharma, Kishor, 2006. "The political economy of civil war in Nepal," World Development, Elsevier, vol. 34(7), pages 1237-1253, July.
  5. Mihir Pandey, 2004. "Impact of trade liberalisation in manufacturing industry in India in the 1980s and 1990s," Indian Council for Research on International Economic Relations, New Delhi Working Papers 140, Indian Council for Research on International Economic Relations, New Delhi, India.

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