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Trade and investment linkages and coordination in Nepal: Impact on productivity and exports and business perceptions


  • Dilli Raj Khanal


  • Prakash Kumar Shrestha

    (*Institute for Policy Research and Development, Nepal)


This research paper intends to analyse: (a) the impacts of ASEAN trade liberalization on the macroeconomy variables – gross domestic product (GDP), Terms of Trade (ToT), balance of trade, inflation and real wage – and agricultural industries (output, exports and imports) in the ASEAN 6 countries (Indonesia, Malaysia, the Philippines, Thailand, Singapore, and Viet Nam); and (b) the impact of trade liberalization on income distribution in Indonesia. A multi-country and multi-commodity computable general equilibrium (CGE) GTAP model has been used as the main tool of analysis.

Suggested Citation

  • Dilli Raj Khanal & Prakash Kumar Shrestha, 2008. "Trade and investment linkages and coordination in Nepal: Impact on productivity and exports and business perceptions," Working Papers 5208, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..
  • Handle: RePEc:esc:wpaper:5208

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    References listed on IDEAS

    1. By Gunnar Jonsson & Arvind Subramanian, 2001. "Dynamic Gains from Trade: Evidence from South Africa," IMF Staff Papers, Palgrave Macmillan, vol. 48(1), pages 1-8.
    2. Marcelo Soto, 2000. "Capital Flows and Growth in Developing Countries: Recent Empirical Evidence," OECD Development Centre Working Papers 160, OECD Publishing.
    3. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
    4. T. N. Srinivasan & Jagdish Bhagwati, 1999. "Outward-Orientation and Development: Are Revisionists Right," Working Papers 806, Economic Growth Center, Yale University.
    5. Michael A. Kouparitsas, 1997. "Economic gains from trade liberalization--NAFTA's impact," Chicago Fed Letter, Federal Reserve Bank of Chicago, issue Oct.
    6. Amelia Santos-Paulino & A. P. Thirlwall, 2004. "The impact of trade liberalisation on exports, imports and the balance of payments of developing countries," Economic Journal, Royal Economic Society, vol. 114(493), pages 50-72, February.
    7. Lee, Jong-Wha, 1996. "Government Interventions and Productivity Growth," Journal of Economic Growth, Springer, vol. 1(3), pages 391-414, September.
    8. Pietro Garibaldi & Nada Mora & Ratna Sahay & Jeromin Zettelmeyer, 2001. "What Moves Capital to Transition Economies?," IMF Staff Papers, Palgrave Macmillan, vol. 48(4), pages 1-6.
    9. Coe, David T & Helpman, Elhanan & Hoffmaister, Alexander W, 1997. "North-South R&D Spillovers," Economic Journal, Royal Economic Society, vol. 107(440), pages 134-149, January.
    10. Andrew Berg & Anne O. Krueger, 2003. "Trade, Growth, and Poverty; A Selective Survey," IMF Working Papers 03/30, International Monetary Fund.
    11. Taylor, Alan M., 1998. "On the Costs of Inward-Looking Development: Price Distortions, Growth, and Divergence in Latin America," The Journal of Economic History, Cambridge University Press, vol. 58(01), pages 1-28, March.
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    Cited by:

    1. Doytch, Nadia & Thelen, Nina & Mendoza, Ronald U., 2014. "The impact of FDI on child labor: Insights from an empirical analysis of sectoral FDI data and case studies," Children and Youth Services Review, Elsevier, vol. 47(P2), pages 157-167.

    More about this item


    Trade and Investment; Nepal; Impact on productivity;

    JEL classification:

    • F1 - International Economics - - Trade

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