Kumar, Ronald R. (2011): Role of Financial and Technology Inclusion, Remittances and Exports vis-à-vis growth: A study of Nepal.
Download (525kB) | Preview
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.
|Item Type:||MPRA Paper|
|Original Title:||Role of Financial and Technology Inclusion, Remittances and Exports vis-à-vis growth: A study of Nepal|
|Keywords:||Information and communications technology; financial development; trade openness; remittances; Nepal|
|Subjects:||F - International Economics > F2 - International Factor Movements and International Business > F24 - Remittances|
|Depositing User:||Ronald R. Kumar|
|Date Deposited:||17. May 2012 11:46|
|Last Modified:||12. Feb 2013 22:50|
Acemoglu, D. (2009) Introduction to Modern Economic Growth, Princeton University Press, U.S.A.
Ahmed, J., Zaman, K. & Shah, I. (2011). "An empirical analysis of remittances-growth nexus in Pakistan using bounds testing approach", Journal of Economics & International Finance, 3: 176-186.
Ahmed, V., Sugiyarto, G. & Jha, S. (2011). "Remittances and Household Welfare: A Case Study of Pakistan", Journal of Social and Policy Sciences, 1: 125-190.
Asian Development Bank (ADB). (2009). Statistical Database System Online. Manila, Asian Development Bank. Retrieved from https://sdbs.adb.org/sdbs/index.jsp. [14 July, 2011].
Beck, T., Levine, R. & Loayza, N. (2000). "Finance and the sources of growth", Journal of Financial Economics. 58: 261-300.
Brown, R. & Ahlburg, A.D. (1999). "Remittance in the Pacific", International Journal of Social Economics, 26: 325-344.
Browne, R. & Leeves, G. (2007). Impacts of International Migration and Remittances on Source Country Household Incomes in Small Island States: Fiji and Tonga. Discussion Paper No. 347. School of Economics, University of Queensland, Australia. Retrieved from http://espace.library.uq.edu.au/eserv.php?pid=UQ:119810&dsID=econdp_347_0407.pdf. [5 December, 2011].
Buch, M.C. & Kuckulenz, A. (2010). "Worker Remittances and Capital Flows to Developing Countries. International Migration. 48(5): 89-117.
Buhalis, D. & Law, R. (2008). "Progress in information technology and tourism management: 20 years on and 10 years after the Internet - The start of eTourism research", Tourism Management, 29: 609-623.
Chami, R., Cosimano, T.F. and Gapen, M.T. (2006). "Beware of emigrants bearing gifts: optimal fiscal and monetary policy in the presence of remittances", IMF Working Paper WP/06/61, Washington, D.C.: International Monetary Fund.
Chami, R., Hakura, D. & Montiel, P. (2009). "Remittances: An Automatic Output Stabilizer?", IMF Working Paper WP/09/91. IMF. Retrieved from http://www.imf.org/external/pubs/ft/wp/2009/wp0991.pdf. [17 October, 2011].
De Haas, H. (2005). "International Migration, Remittances and Development: myths and facts", Third World Quarterly, 26: 1269-1284.
Frankel, J.A. and Rose, A.K. (2000). "Estimating the effects of currency unions on trade and output", NBER Working Paper Series No. 7875. NBER, Cambridge. Retrieved from http://www.wcfia.harvard.edu/sites/default/files/W7857.pdf. [1 December, 2011].
Gaudel, Y.S. (2006). "Remittance Income in Nepal: Need for Economic Development", The Journal of Nepalese Business Studies, 3: 9-17.
Hassan, M.K., Sachez, B. & Yu, J.S. (2011) Financial development and economic growth: New Evidence from panel data. Quarterly Review of Economics and Finance. 51(1): 88-104.
Horscroft, V. (2010). An Eye on East Asia and Pacific - The Role of Information and Communications Technology in Mitigating the Challenges on Economic Geography in the Pacific Islands. World Bank. Retrieved from http://siteresources.worldbank.org/INTEASTASIAPACIFIC/Resources/226262-1291126731435/EOEA_Virginia_Horscroft_Nov2010.pdf [29 December 2010].
Irving J., Mohapatra, S. & Ratha, D. (2010). "Migrant Remittance Flows: Findings from a Global Survey of Central Banks", World Bank Working Paper No. 194/2010. Washington, D.C.: World Bank.
Jalava, J. & Pohjola, M. (2008). "The roles of electricity and ICT in economic growth: Case Finland", Explorations in Economic History, 45: 270-287.
Jayaraman, T.K., Choong, C.K. & Kumar, R. (2009). "Role of Remittances in Economic Growth in Pacific Island Countries: A Study of Samoa", Perspectives on Global Development and Technology, 8: 611-627.
Jayaraman, T.K., Choong, C.K. & Kumar, R. (2010). "Role of remittances in Tongan economy", Migration Letters, 7: 224-230.
Jayaraman, T.K., Choong, C.K. & Kumar, R. (2011a). "Role of Remittances in India’s Economic Growth", Global Business and Economics Review. [Forthcoming]. Retrieved from http://www.inderscience.com/browse/index.php?journalID=168&action=coming> [20 October, 2011].
Jayaraman, T.K., Choong, C.K. & Kumar, R. (2011b) Role of remittances in small Pacific Island economies: an empirical study of Fiji. International Journal of Economics and Business Research. 3(5): 526-542.
Kar, M., Peker, O. & Kaplan, M. (2008) Trade Liberalization, Financial Development and Economic Growth in the Long Term: The Case of Turkey. South East European Journal of Economics and Business. 3(2): 25-38.
Katz, R.L. (2009). "The Economic and Social Impact of Telecommunications Output A Theoretical Framework and Empirical Evidence for Spain", Intereconomics, 44: 41-48.
King, R.G. & Levine, R. (1993a). "Finance and Growth: Schumpeter Might Be Right", Quarterly Journal of Economics, 108: 717-737.
King, R.G. & Levine, R. (1993b). "Finance, entrepreneurship and growth: theory and evidence", Journal of Monetary Economics, 32: 513-542.
Kock, U. & Sun, Y. (2011). "Remittances in Pakistan-Why have they gone up, and why aren’t they coming down?", IMF Working Papers WP/11/200, IMF. Retrieved from http://www.imf.org/external/pubs/ft/wp/2011/wp11200.pdf?. [17 October, 2011].
Koutroumpis, P. (2009). "The economic impact of broadband on growth: A simultaneous approach", Telecommunications Policy, 33: 471-485.
Kumar, R.R. & Kumar, R. (2012). "Exploring the nexus between information and communications technology, tourism and growth in Fiji", Tourism Economics, 18: 359-371.
Kumar, R.R. (2011a). "Do Remittances, Exports and Financial Development Matter for Economic Growth? A Case Study of Pakistan using Bounds Approach", Journal of International Academic Research, 11: 18-27.
Kumar, R.R. (2011b). "Role of Trade Openness, Remittances, Capital Inflows, and Financial Development in Vanuatu", in: Sirkeci, I., Cohen, J.H. & Ratha, D. (eds.), Migration and Remittances during the Global Financial Crisis and Beyond, Washington DC; World Bank.
Kumar, R.R., Naidu, V. & Kumar, R. (2011). "Exploring the Nexus between Trade, Visitor Arrivals, Remittances and Income in the Pacific: a study of Vanuatu", Acta Universitatis Danubius. Œconomica, 7: 199-218.
Kuppusamy, M., Raman, M. & Lee, G. (2009). "Whose ICT Investment Matters to Economic Growth: Private or Public? The Malaysian Perspective", Electronic Journal on Information Systems in Developing Countries, 37: 1-19.
Levine, R., Loayza, N. & Beck, T. (2000). "Financial Intermediation and Growth: Causality and Causes", Journal of Monetary Economics, 46: 31-77.
Maclellan, N. & Mares, P. (2005) Remittances and labour mobility in the Pacific - A working paper on seasonal work programs in Australia for Pacific Islanders. Melbourne, Swinburne Institute for Social Research. Australia. Retrieved from http://researchbank.swinburne.edu.au/vital/access/manager/Repository/swin:5609 [ 24 August 2009].
McKinnon, R.I. (1973) Money and capital in economic development. Washington, DC: Brookings Institution.
Minges, M. & Gray, V. (2004) Bula Internet: Fiji ICT Case Study. International Telecommunication Union. Retrieved from http://www.itu.int/ITU-D/ict/cs/fiji/material/CS_FJI.pdf [accessed: 27 December 2010].
Pant, K.P., Pandey, V.L. & Rahut, D.B. (2011) Effects of Foreign Employment on Poverty, Labour Supply and Agricultural Growth in South Asia: A Case of Nepal, India and Bhutan. Sanei Working Paper Series, No. 11-08. South Asia Network of Economic Research Institutes, Bangladesh. Retrieved from http://www.saneinetwork.net/research/round11/08-K%20P%20Pant.pdf [ 2 December, 2011].
Pesaran, M.H., Shin, Y. & Smith, R. (2001). "Bounds testing approaches to the analysis of level relationships", Journal of Applied Econometrics, 16: 289-326.
Porter, M. (2001) "Strategy and the Internet", Harvard Business Review, 79: 63-78.
Ratha, D. & Riedberg, J. (2005). On Reducing Remittance Costs, Washington D.C.: World Bank.
Ratha, D. (2007). Leveraging Remittances for Development, Migration Policy Institute, Washington D.C.: World Bank.
Riester, A. (2010). "Impact of the global recession on international labour migration and remittances: Implications for poverty reduction and development in Nepal, Philippines, Tajikistan, and Uzbekistan", in: Bauer, A. & Thant, M. (eds.) (2010). Poverty and Sustainable Development in Asia: Impacts and Responses to the Global Economic Crisis. Asian Development Bank, Manila. Retrieved from http://www.adb.org/documents/books/poverty-sustainable-development/poverty-sustainable-development-asia.pdf [2 December, 2010].
Rose, A.K. (2004). "Do WTO members have more liberal trade policy?", Journal of Internal Economics, 63: 209-235. Retrieved from http://www.sciencedirect.com/science?_ob=MiamiImageURL&_cid=271695&_user=826297&_pii=S0022199603000710&_check=y&_origin=&_coverDate=31-Jul-2004&view=c&wchp=dGLbVlt-zSkzV&md5=a05c6b27abe36a19028dee7265f57609/1-s2.0-S0022199603000710-main.pdf. [5 December, 2011].
Sen, A. (1999). Development as Freedom, New York: Anchor Books.
Sharma, O. & Bhandari, R. (2005). "Foreign Trade and Its Effects on Nepalese Economic Development", The Journal of Nepalese Business Studies, 2: 13-32.
Sharma, S.R. (2007). "Planned Development and Conflict: The Role of Private Sector in augmenting remittance in Nepal", in: Dhugana, H. & Logan, M. (eds.), Sustainable Development in Conflict Environments: Challenges and Opportunities, SAHAKARYA Project. Centre for International Studies and Cooperation (CECI), Kathmandu, Nepal Sheldon, P. (1997). Tourism information technologies, Oxford: CAB.
Srivastava, N.L. & Chaudhary, S.K. (2007). Role of Remittance in Economic Development of Nepal, The Journal of Nepalese Business Studies, 4: 28-37.
Suleri, A.Q. & Savage. K. (2006). Remittances in crises: a case study from Pakistan, Overseas Development Institute (ODI). U.K.
United Nations Economic and Social Commission for Asia and the Pacific, (UNESCAP) (2010). Economic and Social Survey, 2010, Bangkok: UNESCAP.
Venturini, F. (2009). "The long-run impact of ICT", Empirical Economics, 37: 497-515.
Wacziarg, R. & Welch, K. (2008). "Trade Liberalization and Growth: New Evidence", The World Bank Economic Review, 22: 187-231.
Winters, A.L, McCulloch, N. & McKay, A (2004). "Trade Liberalization and Poverty: The Evidence So Far", Journal of Economic Literature. 42: 72-115.
World Bank (2011). WDI Online Word Development Indicators, Washington D.C.: World Bank. Retrieved from http://databank.worldbank.org/ddp/home.do?Step=1&id=4# [8 August, 2011].