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Impact of Exchange Rate Change on Foreign Trade Balance in Nepal

Author

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  • Satis Chandra Devkota

    (Nepal Electricity Authority, Kathmandu, Nepal.)

Abstract

Nepal is a land locked country having 800 kms. open border with India. It has been facing the trade deficit from history to yet especially with India and then to the rest of the world (RoW) countries. His Majesty the Government had adopted the different policies in different time but most of them are found to be failed. In these circumstances this study tries to identify whether the exchange rate change (especially the currency devaluation) is the best solution to solve the problem by using the appropriate hypothesis and methodology as mentioned in the article.

Suggested Citation

  • Satis Chandra Devkota, 2004. "Impact of Exchange Rate Change on Foreign Trade Balance in Nepal," International Trade 0410003, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpit:0410003
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    References listed on IDEAS

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    1. Richard V. Burkhauser & Paul J. Gertler, 1995. "Introduction," Journal of Human Resources, University of Wisconsin Press, vol. 30, pages s1-s6.
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    Cited by:

    1. Guna Raj Bhatta, 2013. "Remittanceand Trade Deficit Nexus in Nepal: A VECM Approach," NRB Economic Review, Nepal Rastra Bank, Research Department, vol. 25(1), pages 37-50, April.

    More about this item

    Keywords

    Exchange Rate; Foreign Trade;

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business

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