International Journal of Scientific and Research Publications

IJSRP, Volume 4, Issue 11, November 2014 Edition [ISSN 2250-3153]


Trade Dependency-Inflation Relationship in Nepal (Cointegration Approach)
      Santosh Koirala
Abstract: The open border between Nepal and India and trade dependency of nascent Nepalese economy with her economic giant neighbor would guide the attention of Nepalese policy-makers to consider the transmission effect of Indian Prices on Inflation in Nepal. The study employs unique variable Trade-Dependency with India as inflation transmitting variable to analyze whether Inflation in Nepal is fully home-made or does Nepal borrow [significant] portion of its inflation from India. Applying Co-Integration and VECM approach of monthly time series data from the period of 2000:01 to 2013:07, our study shows strong positive long-term relationship inflation in Nepal and trade dependency with India.

Reference this Research Paper (copy & paste below code):

Santosh Koirala (2018); Trade Dependency-Inflation Relationship in Nepal (Cointegration Approach); Int J Sci Res Publ 4(11) (ISSN: 2250-3153). http://www.ijsrp.org/research-paper-1114.php?rp=P353378
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