Role of Exchange Rate, Import and Export in Economic Development of Nepal

International Journal of Economics and Management Studies

© 2019 by SSRG - IJEMS Journal

Volume 6 Issue 8

Year of Publication : 2019

Authors : Durga Prasad Dumre

10.14445/23939125/IJEMS-V6I8P115

How to Cite?

Durga Prasad Dumre, "Role of Exchange Rate, Import and Export in Economic Development of Nepal," SSRG International Journal of Economics and Management Studies, vol. 6,  no. 8, pp. 136-144, 2019. Crossref, https://doi.org/10.14445/23939125/IJEMS-V6I8P115

Abstract:

The basic objective of this study is to investigate the impacts of exchange rate, import and export on gross domestic product (GDP) of Nepal using time series data from 1974/75 to 2016/17, employing Augmented Dickey-Fuller (ADF) unit root test to measure stationary of variables. The study has been used Simple regression equation to be estimated by Ordinary Least Square (OLS) method to draw the conclusion. The model is specified with four macro variables, namely, Gross Domestic Product (GDP), foreign exchange rate, Export and Import. The finding reveals that there is statistically significant relationship between all independent variables and dependent variable. Residuals are homoskedastic and free from serial autocorrelation, the residuals are normally distributed.

Keywords:

Exchange Rate, Import, Export, GDP

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