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Role of Financial and Technology Inclusion, Remittances and Exports vis-à-vis growth: A study of Nepal

By Ronald R. Kumar


Using the ARDL Bounds approach to cointegration technique, we explore the role of financial services, information and communications technology, remittance inflows and export liberalisation in Nepal over the periods 1975-2010. The results show that financial development, telecommunications, remittance inflows and export orientation are instrumental in improving income level both in the long and short-run, although in the latter, the effects from financial and technology inclusion and remittances have lagged negative effects. Consequently, we propose besides the need for stable macroeconomic and sound institutional structures, policies targeted towards greater financial viz. technology inclusion, investment in and integration of technology across sectors, encouraging greater remittance inflows through sound labour mobility schemes, export promotion strategies focussed towards not only addressing supply side constraints but also strengthening trade partnership at regional and international fronts as a crucial way forward to establishing a new economic order for a new Nepal.

Topics: F24 - Remittances
Year: 2011
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