An Assessment of the Impact of External Debt on Economic Growth of Nepal
Countries at early stages of development have small stocks of capital and require foreign borrowing for their investment needs and meet their external resource gap. Nepal's dependence on foreign assistance, nearly for the last five decades, can be viewed from the same perspective. The present article is a preliminary work in the direction of analyzing the relationship of external debt and economic growth of Nepal. The examination of debt burden indicators suggests the increasing burden of external debt, with a significant increase in the size and magnitude of such debt during 1990s. The empirical observation shows the external debt flow having positive effect on economic growth. This indicates that external debt should not be viewed only as a burden but also as a major source of financing for a developing economy like Nepal. However, the analysis of external debt stock and debt servicing shows that the equally important that external borrowing be made to supplement but not replace domestic savings in the long run.
Volume (Year): 15 (2003)
Issue (Month): (April)
|Contact details of provider:|| Web page: http://www.nrb.org.np/ecorev/|
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:nrb:journl:v:15:y:2003:p:243-262. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dr. Bishnu Prasad Gautam)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.