Impact of foreign trade and foreign direct investment on economic growth: Empirical insights from Nepal

This study aims to examine the impact of foreign trade and foreign direct investment on Nepal’s long-term economic growth. It uses secondary data from 1989/90 to 2021/22 collected from various economic surveys of the Ministry of Finance of Nepal. Descriptive and explanatory research designs are used in this study. The trace, max-eigen tests, and fully modified least square methods search the long-run co-integration and impact between response and predictor variables. Trace and max-eigen tests consistently point toward the long-run co-integration between dependent (gross domestic product) and independent (import, export, total trade, and foreign direct investment) variables. Exports and imports are found to be negative and statistically significant to explain Nepal’s economic growth. One unit increase in exports results in a 0.748 unit decrease in Nepal’s economic growth. Similarly, total trade volume and foreign direct investment positively impact economic growth. Each unit increase in foreign direct investment results in a 0.0036 unit increase in GDP in Nepal. Foreign trade has a multiplier effect on Nepal’s GDP growth. The 76.35 percent variation in economic growth depends upon total foreign trade volume, exports, imports, and foreign direct investment. To promote sustainable economic growth, policymakers should prioritize policies encouraging increased total foreign trade and foreign direct investment while carefully managing the potential negative impact of excessive reliance on import dynamics

Should income be diversified? A dynamic panel data analysis of Nepalese depository financial institutions

This study analyzes the possible impact of diversity in non-interest income on Nepalese Depository Financial Institutions (DFIs) performance. The study examines variables such as service fees, dividends on equity instruments, and the non-interest revenue ratio to total operational income as endogenous factors. The ROE serves as the key profitability indicator. Additionally, the study explores the impact of control variables on the performance of financial institutions, such as the cost-to-income ratio, the equity-to-total assets ratio, and the ratio of non-performing loans to total loans. Secondary data from fiscal year 2015/16 to 2021/22 are utilized for analysis, employing correlation and regression analyses to assess the relationships between variables. Based on the Hausman Specification test, this study uses a Dynamic Analysis of Panel Data approach, adopting a Random effects regression model. The findings indicate that dividends from equity instruments ( = –0.565*) adversely affect profitability. At the same time, service fees and non-interest revenue as a proportion of overall operating revenue show no significant impact. Control factors like the cost-to-income ratios ( = –0.432**) and the equity-to-total assets ( = –94.101**) adversely affect profitability. The study suggests that income diversification may not be beneficial, urging Nepalese DFIs to prioritize interest income and consider alternative investment opportunities. Reducing the cost-to-income ratios and equity-to-total assets is recommended for enhancing profitability

Natural Hazards Perspectives on Integrated, Coordinated, Open, Networked (ICON) Science

This article is about the state of ICON principles Goldman et al. (2021), https://doi. org/10.1029/2021EO153180 in natural hazards and a discussion on the opportunities and challenges of adopting them. Natural hazards pose risks to society, infrastructure, and the environment. Hazard interactions and their cascading phenomena in space and time can further intensify the impacts. Natural hazards’ risks are expected to increase in the future due to environmental, demographic, and socioeconomic changes. It is important to quantify and effectively communicate risks to inform the design and implementation of risk mitigation and adaptation strategies. Multihazard multisector risk management poses several nontrivial challenges, including: (a) integrated risk assessment, (b) Earth system data-model fusion, (c) uncertainty quantification and communication, and (d) crossing traditional disciplinary boundaries. Here, we review these challenges, highlight current research and operational endeavors, and underscore diverse research opportunities. We emphasize the need for integrated approaches, coordinated processes, open science, and networked efforts (ICON) for multihazard multisector risk management

Financial Self-Help Associations among Far West Nepalese Labor Migrants in Delhi, India

Labor migration to India is the most important source of income for people in Far West Nepal. To better understand the effects of labor migration, a research analyzing why and how migrants invest their money in financial self-help organizations was undertaken. Fieldwork was conducted in the communities of origin in Nepal and migrant communities in India. Based on the study, the paper provides an overview of the existing financial self-help associations, their strengths and weaknesses, accessibility and possibilities of benefits and losses for the migrants and their families. The major conclusion is that migration helps to improve income or security but can also undermine a household's financial situation by perpetuating debt and dependency