Foreign direct investment and economic growth of Nepal: An application of bound testing approach to cointegration

Authors

  • Keshar Bahadur Kunwar Tikapur Multiple Campus, Far Western University, Tikapur Kailali, Nepal

DOI:

https://doi.org/10.3126/sij.v1i0.34925

Keywords:

Foreign direct investment, economic growth, gross domestic product, ADF, ARDL

Abstract

This study employed bounds test based cointegration technique using annual time series data from the period 1990/91 to 2015/16 for exploring relationship between RGDP and FDI in Nepal. This paper examines the effect of FDI on RGDP is insignificant at five percent level of significance. The coefficient (0.35) of (FDI) shows that one percent increase in FDI leads to over 0.35 percent increase RGDP in the long-run. There is no causality between foreign direct investment and economic growth.

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Author Biography

Keshar Bahadur Kunwar, Tikapur Multiple Campus, Far Western University, Tikapur Kailali, Nepal

Keshar Bahadur Kunwar is an Associate Professor at Tikapur Multiple Campus, Far Western University, Tikapur Kailali ,Nepal. He has completed M. Phil. Degree in Economics from Tribhuvan University. He is currently a PhD scholar in Economics at Tribhuvan University. He has published some articles in national peer review journals. He is interested in research and publication in economics.

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Published

2020-01-30

How to Cite

Kunwar, K. B. (2020). Foreign direct investment and economic growth of Nepal: An application of bound testing approach to cointegration. Siddhajyoti Interdisciplinary Journal, 1, 104–113. https://doi.org/10.3126/sij.v1i0.34925

Issue

Vol. 1 (2020)

Section

Articles

License

© Siddhajyoti Education Campus, Phosretar, Sindhuli