Publication:
Nepal : Trade and Competitiveness Study

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dc.contributor.authorWorld Bank
dc.date.accessioned2013-07-09T16:14:28Z
dc.date.available2013-07-09T16:14:28Z
dc.date.issued2003-10-22
dc.description.abstractThis study analyzes Nepal's trade policies and performance, identifies constraints to increasing trade competitiveness, and recommends policy changes and technical assistance to improve trade performance. The study is timely, as Nepal's interim Poverty Reduction Strategy Paper of 2003 assigns a key role to trade and exports as drivers of broad-based economic growth-one of the four main pillars of its strategy. Key conclusions of this report suggest Nepal's trade policies are generally sound, and the country is competitive in a variety of products. However, these positive factors are tempered by constraints that make Nepal's productivity among the lowest in the region, create an inhospitable business climate, and discourage foreign direct investment-a key conduit for export-market access and technology transfer. The most critical constraints are: 1) delays in customs and transshipment to India's Kolkata port; 2) high infrastructure costs, especially transport and power; 3) a rigid, formal labor market; and, 4) weak policy and institutions in the areas of taxation, investment and trade promotion. But Nepal's prudent macroeconomic stance throughout most of the 1990s, helped increase its competitiveness. Low levels of domestic borrowing by the public sector, the nominal anchor of an exchange-rate peg with India, and a large jump in remittances by expatriate Nepalese labor have enabled Nepal to maintain macroeconomic stability. Notwithstanding, and despite liberalization and growth of trade in the 1990s, the study shows that competitiveness of Nepal's economy is low, as measured by firm-level surveys in manufacturing, farm yields, and aggregate productivity estimates. Labor productivity in manufacturing and agriculture are among the lowest in the region, while manufacturing unit labor costs are among the highest, even though Nepal has comparative advantage in a range of agriculture and manufacturing products. This study shows how three key factors contribute to low price competitiveness and productivity in Nepal's economy: a) inadequate mechanisms and incentives for firms to acquire new technology, b) weak infrastructure, and, c) an unfavorable business climate. Conclusions suggest major impacts of trade on the poor can come from switching to high value cash crops from subsistence agriculture. A key constraint to that is inadequate transportation infrastructure. Growth of transport can lead to welfare effects for the poor by enabling commercial crops and use more fertilizers by farmers. Transportation also has direct welcome effects through creation of employment and income-generating opportunities. To this end, transition from traditional subsistence agriculture toward higher-margin, tradable crops (such as spices, tea, and vegetables) can be promoted by increasing access to year-round irrigation, inputs, technology, and, most importantly, markets.en
dc.identifierhttp://documents.worldbank.org/curated/en/2003/10/6338516/nepal-trade-competitiveness-study
dc.identifier.doi10.1596/14417
dc.identifier.urihttps://hdl.handle.net/10986/14417
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCESSION NEGOTIATIONS
dc.subjectAGREEMENT ON TRADE
dc.subjectAGRICULTURAL INCOMES
dc.subjectAGRICULTURAL PRODUCTS
dc.subjectAGRICULTURAL SUBSIDIES
dc.subjectAGRICULTURE
dc.subjectAIRLINES
dc.subjectAVERAGE PRODUCTIVITY
dc.subjectAVERAGE TARIFF
dc.subjectAVERAGE TARIFF RATE
dc.subjectBANKRUPTCY
dc.subjectBANKRUPTCY LAW
dc.subjectBORDER PRICES
dc.subjectCAPACITY BUILDING
dc.subjectCAPITAL MARKETS
dc.subjectCHAMBERS OF COMMERCE
dc.subjectCOMMERCIAL DIPLOMACY
dc.subjectCOMMODITIES
dc.subjectCOMPARATIVE ADVANTAGE
dc.subjectCOMPETITION POLICY
dc.subjectCOMPETITION POLICY LEGISLATION
dc.subjectCOMPETITIVE ADVANTAGES
dc.subjectCOMPETITIVENESS
dc.subjectCONCESSIONS
dc.subjectCONSUMER GOODS
dc.subjectCURRENCY
dc.subjectCUSTOMS
dc.subjectCUSTOMS CLEARANCE
dc.subjectCUSTOMS DEPARTMENT
dc.subjectCUSTOMS DUTIES
dc.subjectCUSTOMS DUTY
dc.subjectCUSTOMS POSTS
dc.subjectCUSTOMS PROCEDURES
dc.subjectDOMESTIC INDUSTRIES
dc.subjectDOMESTIC MARKETS
dc.subjectDOMESTIC TRADE
dc.subjectDUMPING
dc.subjectDUTY DRAWBACK
dc.subjectDUTY-DRAWBACK SCHEME
dc.subjectDUTY-FREE ACCESS
dc.subjectECONOMIC COMPETITIVENESS
dc.subjectECONOMIC COOPERATION
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC HISTORY
dc.subjectECONOMIC RATE OF RETURN
dc.subjectECONOMIC STRUCTURE
dc.subjectECONOMIC VOLATILITY
dc.subjectEMPLOYMENT GROWTH
dc.subjectEXCHANGE RATES
dc.subjectEXPORT BASKET
dc.subjectEXPORT COMPETITIVENESS
dc.subjectEXPORT EARNINGS
dc.subjectEXPORT GROWTH
dc.subjectEXPORT INCENTIVES
dc.subjectEXPORT PRICES
dc.subjectEXPORT PRODUCTS
dc.subjectEXPORT PROMOTION
dc.subjectEXPORTERS
dc.subjectEXPORTS
dc.subjectEXTERNAL SHOCKS
dc.subjectFACTOR MARKETS
dc.subjectFINAL GOODS
dc.subjectFINANCE
dc.subjectFINANCIAL POSITION
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectFOREIGN EXCHANGE
dc.subjectFOREIGN INVESTMENT
dc.subjectFOREIGN INVESTORS
dc.subjectFORMAL TRADE
dc.subjectFREE ACCESS
dc.subjectFREIGHT
dc.subjectGDP
dc.subjectGLOBAL EXPORTS
dc.subjectGLOBAL MARKET
dc.subjectGLOBAL MARKETS
dc.subjectGOVERNING INVESTMENT
dc.subjectGROSS DOMESTIC PRODUCT
dc.subjectGROWTH RATE
dc.subjectGROWTH SCENARIO
dc.subjectIMPORTS
dc.subjectIMPROVING CUSTOMS
dc.subjectINCOME
dc.subjectINCOME EFFECT
dc.subjectINCREASING COMPETITION
dc.subjectINCREASING COMPETITIVENESS
dc.subjectINCREASING TRADE
dc.subjectINTELLECTUAL PROPERTY
dc.subjectINTELLECTUAL PROPERTY RIGHTS
dc.subjectINTERMEDIATE INPUTS
dc.subjectINTERNATIONAL COMPETITION
dc.subjectINTERNATIONAL ECONOMICS
dc.subjectINTERNATIONAL TRADE
dc.subjectINVENTORY
dc.subjectINVESTMENT CLIMATE
dc.subjectINVESTMENT INCENTIVES
dc.subjectINVESTMENT POLICY
dc.subjectITC
dc.subjectLABOR COSTS
dc.subjectLABOR FORCE
dc.subjectLABOR MARKET
dc.subjectLABOR MARKET POLICIES
dc.subjectLABOR MARKETS
dc.subjectLABOR PRODUCTIVITY
dc.subjectLANDLOCKED COUNTRIES
dc.subjectLIVING STANDARDS
dc.subjectLLC
dc.subjectLOGISTICS COSTS
dc.subjectLOGISTICS REQUIREMENTS
dc.subjectLOW-INCOME COUNTRIES
dc.subjectMACROECONOMIC MANAGEMENT
dc.subjectMACROECONOMIC PERFORMANCE
dc.subjectMACROECONOMIC STABILITY
dc.subjectMANUFACTURING
dc.subjectMARKET ACCESS
dc.subjectMARKET ENTRY
dc.subjectMARKET SHARE
dc.subjectMINIMUM WAGE
dc.subjectNATIONAL LOGISTICS
dc.subjectNEIGHBORING COUNTRIES
dc.subjectNET EXPORTS
dc.subjectNON-TARIFF BARRIERS
dc.subjectPER CAPITA INCOME
dc.subjectPOLICY REFORMS
dc.subjectPREFERENTIAL TRADE
dc.subjectPREFERENTIAL TRADE AGREEMENT
dc.subjectPRIMARY GOODS
dc.subjectPRIVATE INVESTMENT
dc.subjectPRIVATE SECTOR
dc.subjectPRODUCTIVITY
dc.subjectPROPERTY RIGHTS
dc.subjectPROTECTION RATES
dc.subjectPUBLIC SECTOR
dc.subjectPURCHASING POWER
dc.subjectQUANTITATIVE RESTRICTIONS
dc.subjectREAL EXCHANGE RATE
dc.subjectREGIONAL AGREEMENT
dc.subjectREGIONAL COOPERATION
dc.subjectREGIONAL TRADE
dc.subjectREGIONAL TRADE AGREEMENTS
dc.subjectREGULATORY FRAMEWORK
dc.subjectREGULATORY FRAMEWORKS
dc.subjectREGULATORY REFORMS
dc.subjectREVENUE LOSS
dc.subjectROAD TRANSPORT
dc.subjectRULES OF ORIGIN
dc.subjectSAFEGUARD MEASURES
dc.subjectSTRUCTURAL CHANGES
dc.subjectTARIFF BARRIERS
dc.subjectTARIFF BINDINGS
dc.subjectTARIFF DISPERSION
dc.subjectTARIFF LEVELS
dc.subjectTARIFF RATE
dc.subjectTARIFF RATES
dc.subjectTARIFF REDUCTIONS
dc.subjectTARIFF STRUCTURE
dc.subjectTAX REVENUE
dc.subjectTAXATION
dc.subjectTECHNICAL ASSISTANCE
dc.subjectTECHNICAL BARRIERS
dc.subjectTECHNOLOGY TRANSFER
dc.subjectTELECOMMUNICATIONS
dc.subjectTOTAL FACTOR PRODUCTIVITY
dc.subjectTOURISM
dc.subjectTRADE
dc.subjectTRADE AGREEMENT
dc.subjectTRADE AND INVESTMENT POLICY
dc.subjectTRADE BALANCE
dc.subjectTRADE COMPETITIVENESS
dc.subjectTRADE DATA
dc.subjectTRADE DIVERSION
dc.subjectTRADE FACILITATION
dc.subjectTRADE FINANCE
dc.subjectTRADE GROWTH
dc.subjectTRADE IN GOODS
dc.subjectTRADE INTEGRATION
dc.subjectTRADE LIBERALIZATION
dc.subjectTRADE NEGOTIATION
dc.subjectTRADE PERFORMANCE
dc.subjectTRADE POLICIES
dc.subjectTRADE POLICY
dc.subjectTRADE POLICY ANALYSIS
dc.subjectTRADE PROMOTION
dc.subjectTRADE REFORMS
dc.subjectTRADE REGIME
dc.subjectTRADE UNION
dc.subjectTRADE UNIONS
dc.subjectTRADE-RELATED INTELLECTUAL PROPERTY RIGHTS
dc.subjectTRADING PARTNERS
dc.subjectTRAFFIC
dc.subjectTRANSACTION COSTS
dc.subjectTRANSACTIONS COSTS
dc.subjectTRANSIT
dc.subjectTRANSIT ROUTES
dc.subjectTRANSPORT COSTS
dc.subjectTRANSPORT EQUIPMENT
dc.subjectTRANSSHIPMENT
dc.subjectUNEMPLOYMENT
dc.subjectUNFAIR TRADE PRACTICES
dc.subjectVALUATION
dc.subjectVALUE ADDED
dc.subjectWAGES
dc.subjectWORLD MARKETS
dc.subjectWORLD TRADE
dc.subjectWORLD TRADE ORGANIZATION
dc.subjectWTO
dc.titleNepal : Trade and Competitiveness Studyen
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.date.doiregistration2025-05-07T10:33:41.631755Z
okr.doctypeEconomic & Sector Work::Foreign Trade, FDI, and Capital Flows Study
okr.doctypeEconomic & Sector Work
okr.docurlhttp://documents.worldbank.org/curated/en/2003/10/6338516/nepal-trade-competitiveness-study
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeTrade and Competitiveness
okr.guid817271468290458750
okr.identifier.externaldocumentum000012009_20051012153246
okr.identifier.internaldocumentum6338516
okr.identifier.report33793
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2005/10/12/000012009_20051012153246/Rendered/PDF/337930rev0finaldtis1nepal122oct03.pdfen
okr.region.administrativeSouth Asia
okr.region.countryNepal
okr.sectorEducation :: Primary education
okr.topicInternational Economics and Trade::Trade and Regional Integration
okr.topicInternational Economics and Trade::Trade Policy
okr.topicEconomic Theory and Research
okr.topicIndustry::Common Carriers Industry
okr.topicInternational Economics and Trade::Free Trade
okr.topicMacroeconomics and Economic Growth
okr.unitPREM Sector Unit (SASPR)
okr.volume1 of 1
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