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Applying the Growth Identification and Facilitation Framework to Nepal

Author

Listed:
  • Jiajun Xua
  • Sarah Hager

Abstract

This paper analyzes opportunities for growth in Nepal by applying the policy tool of New Structural Economics – Growth Identification and Facilitation Framework (GIFF). Drawing on firm level surveys, stakeholder interviews, and existing datasets it aims to contribute to policy discussions in Nepal and to demonstrate the use of the GIFF for other least developed countries. The report argues that Nepal should seek to capture industrial transfer from China to establish a foothold in global value chains, create employment and catalyze structural transformation. The report identifies product-level advantages arising from preferential market access and sector-specific binding constraints, and proposes how to use Special Economic Zones to mitigate identified constraints to set Nepal on a path of structural transformation.

Suggested Citation

  • Jiajun Xua & Sarah Hager, 2017. "Applying the Growth Identification and Facilitation Framework to Nepal," CDP Background Papers 035, United Nations, Department of Economics and Social Affairs.
    • Handle: RePEc:une:cpaper:035
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    File URL: https://www.un.org/development/desa/dpad/wp-content/uploads/sites/45/publication/CDP_BP35_April_2017.pdf
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    More about this item

    Keywords

    Nepal;

    JEL classification:

    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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