Measurement and determinants of efficiency in crop production in Nepal

Our study is an attempt to quantify efficiency of farmers and estimate the gap from its potential given the technology currently prevailing in Nepal. To estimate inefficiency in agriculture, we use a stochastic frontier production function. We also use OLS to compare the results for the Cobb-Douglas and translogarithmic functions to determine which of the two provides a better representation of the data. It is also interesting to examine what these functions yield for the levels of technical inefficiencies, returns to scale, and the elasticities of output with respect to different inputs

Agricultural Productivity and Poverty Reduction in Nepal

This paper provides for the first time a clear quantitative link between agricultural productivity and poverty among rural households in Nepal. Using data from a nationwide Nepal Living Standard Survey 2004, we first estimate household-specific productivity per worker under both Cobb–Douglas and translog production functions. Second, the paper identifies the determinants of productivity. Third, we explore a theoretical link between productivity and poverty using Sen\u27s poverty index and find empirically that productivity growth substantially helps poverty reduction. Finally, the integrated effects of changes in productivity determinants are found to be stronger than the outcomes of sectoral policies taken in isolation

The Impact of Foreign Remittances on Poverty in Nepal: A Panel Study of Household Survey Data, 1996-2011

Using data from the longitudinal panel surveys of 1996, 2004, and 2011, this paper examines the dynamics of foreign remittances and their impact on poverty in Nepal. The intent is to explore how foreign remittances have evolved and impacted poverty and economic well-being of households. Focusing on a consistent set of households across the three survey rounds in a balanced panel format helps examine the effect of foreign remittances with appropriate controls. Results from methodologically consistent, random-effects regressions that correct for potential attrition and heterogeneity bias support significant poverty-reducing and, more accurately, economic well-being-enhancing effects of foreign remittances especially when originating in countries other than India. This and other findings are valuable to the assessment of policies on utilizing foreign labor migration and remittances as a vehicle to reduce poverty in Nepal

Inequality in health care utilization and equity: a cross-country comparision of low and middle income countries

This dissertation identifies the sustainable policies that can reduce disparity in health care utilization, education and income from the low and middle income countries represented by Albania, Nepal, Tajikistan and Tanzania. Concentration indices are used to calculate the income related inequality in health care utilization and education, and Gini index is used to calculate the inequality in income. Likewise, horizontal inequity index is used to test whether the principle of equal treatment for equal need and equal schooling for equal need is maintained in all countries under study. Finally, a mechanism is proposed for the first time in the literature to quantify the effect of policy change on disparity. Then this tool is used to quantify the effect of policy change on disparity in health care utilization, education and income. Major findings of this dissertation are: (1) Statistically significant inequality exist in all countries under study and the principle for equal treatment for equal need and equal schooling for equal need are also not fulfilled. (2) Vicious vs. virtuous circle of disparity exist among health care utilization, education and income. For example, an increase in education and income may not always decrease income related inequality in health care utilization. However, if those increases respectively decrease the inequality in education and income first then that could automatically decrease inequality in health care utilization. This fact is equally applicable for the reduction of inequality in education and income. If the changes in policy variable increase the disparity in the same variable that could lead to the vicious circle of disparity among three whereas if that changes reduces disparity in the same variable that could leads to the virtuous circle of disparity among three. (3) Thus, integrated approach of development is sustainable and scalable than single sectoral development policy to eliminate disparity from low and middle income countries represented by Albania, Nepal, Tajikistan and Tanzania

Firm Size, Foreign Exposure and Inequality in Wage: A Decomposition Analysis

This study uses pooled cross-section data from two large surveys of firms in Nepal to determine wage inequality. Applying an inequality decomposition procedure, the estimated wage inequality is then attributed to various factors that affect the labor demand function in the country. We find that firm size and exposure of firms to international trade are among the factors showing statistical significance in affecting wage disparity in Nepal. To the extent wage inequality can be attributed to the factors considered in this study, firm size alone accounts for 55 to 84 percent of the inequality depending on the size indicators such as employment or sales. On the other hand, foreign exposure, unlike strongly suggested in the literature, has played much less of a role

Firm Size, Foreign Exposure and Inequality in Wage: A Decomposition Analysis

This study uses pooled cross-section data from two large surveys of firms in Nepal to determine wage inequality. Applying an inequality decomposition procedure, the estimated wage inequality is then attributed to various factors that affect the labor demand function in the country. We find that firm size and exposure of firms to international trade are among the factors showing statistical significance in affecting wage disparity in Nepal. To the extent wage inequality can be attributed to the factors considered in this study, firm size alone accounts for 55 to 84 percent of the inequality depending on the size indicators such as employment or sales. On the other hand, foreign exposure, unlike strongly suggested in the literature, has played much less of a role

Impact of remittance on poverty and inequality in Nepal: Evidence from three rounds of the NLSS survey

This research paper addresses the question: How much of a role has the increase in migration and remittance played in the reduction of poverty and in the rise and subsequent fall in income inequality in Nepal

Impacts of COVID-19 on Nepalese Economy

Even though Nepal reported the first confirmed case of COVID-19 in late January 2020, Nepal was one of the least affected countries in South Asia until the end of April 2020. Lockdown and social distancing were implemented from the very beginning and people also contributed voluntarily with certain exceptions to that government’s efforts. That has a positive effect on flattening the curves of COVID-19 affected people and the related death rates in Nepal. However, the macroeconomic consequences of the pandemic are pretty high for a remittance based small economy. This hardship is further escalated when the excessive inflow of the Nepali migrant workers from India carried and transmitted the virus to 1,811 people by June 1, 2020. Still, that number is not high if the government gets success to control the spread outright

Causes of Export Instability in Nepal.

Heavy and sudden fluctuations in exports and price of exports creates the serious problems in balance of payments (BOP), national income, investment and then also creates the severe adverse impact on the overall growth of lessdeveloped countries. The severe consequences of export instability at the various front of the economy are ratchet effect on wages and manufactured products in the industrialized countries, especially during the period after boom, and the inflationary consequences on the least developed countries (LDCs) through the higher prices. In addition, all most all of the countries mostly failed to meet the minimum import requirements of target rate of growth and as a consequence, a persistent trade gap would generate, which reduce the economic growth. The will reduce investment and saving and finally deteriorate the situation of tax revenue. In this context, most of the recent studies argued that instability in exports are related with commodity and geographic concentration index of exports, and gross domestic products (GDP) of the country. In addition to these, some other researchers argued that that export instability is also caused by growth rate of GDP. However, in this study we try to determine whether commodity and geographic concentration index of Nepalese exports and instability in agricultural and non-agricultural sector GDP cause export instability in Nepal by using the appropriate methodology as mentioned in this study.Export Instability

Income Convergence among Districts of Nepal

We study absolute and conditional convergence of real income per capita in Nepal using cross-section data. Lack of detailed data precludes estimations based on long time series for districts, development zones or topographical regions. A similar constraint exists in estimating the - convergence which indicates if the dispersion of incomes is narrowing over time. Yet data available from Nepal over the last decade do permit investigation of some convergence issues. We use the results of the National Living Standard Survey (NLSS) I and II (Central Bureau of Statistics) to examine if the initially poorer districts have displayed a tendency to catch up with the initially richer districts