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Cooperatives and economic growth in a developing country: The case of Nepal

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  • Ramesh C. Paudel
  • Chakra Pani Acharya

Abstract

Cooperatives play important role in economic development via multiple channels, particularly, in developing countries’ cases. Considering this fact, Nepal's constitution 2017 has incorporated the cooperative as one of the three pillars of her economy. This paper aims to analyze the role of cooperatives in the economic development of Nepal. For this, first, this paper documents the trend and pattern of Nepalese cooperatives’ evolving structure, then moves to the econometric estimation to analyze the role of cooperatives in economic growth employing an advanced methodology. Looking at the properties of time series data for the period of 49 years from 1970 to 2018, the autoregressive distributed lag (ARDL) approach of cointegration is employed. The major finding is that the development of the cooperatives has a long‐run relationship with economic growth. However, the focus should be seen as on the involvement of many people in the cooperatives’ activities rather than just on amassing the cooperatives’ capital. The results also suggest that there is a need for the attention of policymakers so ensure that share capital contributes to economic growth. Therefore, the areas of priorities and scope of work of cooperatives need to be reconsidered when formulating new policies related to cooperatives.

Suggested Citation

  • Ramesh C. Paudel & Chakra Pani Acharya, 2022. "Cooperatives and economic growth in a developing country: The case of Nepal," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(3), pages 797-815, September.
    • Handle: RePEc:bla:annpce:v:93:y:2022:i:3:p:797-815
    DOI: 10.1111/apce.12323
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    References listed on IDEAS

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    Cited by:

    1. Marcos Carchano & Inmaculada Carrasco & Ángela González, 2024. "Eco‐innovation and environmental performance: Insights from Spanish wine companies," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 95(2), pages 595-623, June.
    2. Giuseppe Terzo & Giuseppe Notarstefano & Umberto Di Maggio, 2024. "Strengthening local economies through social capital: The role of cooperative firms in driving economic growth in Italy," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 95(3), pages 863-882, September.
    3. Esther J. Cheyo & Edmond Nyuyki Mainimo & Daniel M. Okello & Walter Odongo & Stephen W. Kalule, 2024. "Participation and commercialization in producer cooperatives: Insights on the role of cooperative functioning and equity strategies," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 95(3), pages 815-834, September.
    4. Huma Neupane & Krishna P. Paudel & Qinying He, 2023. "Impact of cooperative membership on market performance of Nepali goat farmers," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(3), pages 805-830, September.

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