From Evidence to Policy Supporting Nepal’s Trade Integration Strategy : Trade Imbalances and Remittances

Nepal's trade balance in goods and services has been in deficit for many years. The large deficit has not resulted in a substantial accumulation of net foreign liabilities, as it has been largely financed with workers' remittances from ab...

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Main Authors:	Portugal, Alberto, Zildzovic, Emir
Format:	Report
Language:	English en_US
Published:	World Bank, Washington, DC 2016
Subjects:	trade deficit remittances saving rates taxation subsidies
Online Access:	http://documents.worldbank.org/curated/en/2016/07/26584622/evidence-policy-supporting-nepal’s-trade-integration-strategy-policy-note-1 http://hdl.handle.net/10986/24923

id	okr-10986-24923
recordtype	oai_dc
spelling	okr-10986-249232021-05-25T08:50:49Z From Evidence to Policy Supporting Nepal’s Trade Integration Strategy : Trade Imbalances and Remittances Portugal, Alberto Zildzovic, Emir trade deficit remittances saving rates taxation subsidies Nepal's trade balance in goods and services has been in deficit for many years. The large deficit has not resulted in a substantial accumulation of net foreign liabilities, as it has been largely financed with workers' remittances from abroad. Indeed, remittances are the largest component of the current account. This report aims at addressing the following questions: what are the underlying drivers of the trade imbalances and their relative contributions to the deficit (e.g. domestic private expenditure fueled by remittances versus public expenditures, relative prices, etc.)? What are the paths to be expected for the trade balance and the current account in the medium run, based on reasonable forecast assumptions for the main identified determinants? What are the implications of high remittances for the competitiveness in the short and long-run? How can Nepal maximize the positive impact of remittances in the economy? The authors assess the impact of remittances on Nepal's real exchange rate and attempt to distinguish between their short and long term impact. To conclude, efforts to increase savings and improve the allocation of remittances should also be accomplished through improvements in the overall investment climate and the business environment. 2016-08-24T16:38:54Z 2016-08-24T16:38:54Z 2016-07-01 Report http://documents.worldbank.org/curated/en/2016/07/26584622/evidence-policy-supporting-nepal’s-trade-integration-strategy-policy-note-1 http://hdl.handle.net/10986/24923 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Policy Note South Asia Nepal
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	trade deficit remittances saving rates taxation subsidies
spellingShingle	trade deficit remittances saving rates taxation subsidies Portugal, Alberto Zildzovic, Emir From Evidence to Policy Supporting Nepal’s Trade Integration Strategy : Trade Imbalances and Remittances
geographic_facet	South Asia Nepal
description	Nepal's trade balance in goods and services has been in deficit for many years. The large deficit has not resulted in a substantial accumulation of net foreign liabilities, as it has been largely financed with workers' remittances from abroad. Indeed, remittances are the largest component of the current account. This report aims at addressing the following questions: what are the underlying drivers of the trade imbalances and their relative contributions to the deficit (e.g. domestic private expenditure fueled by remittances versus public expenditures, relative prices, etc.)? What are the paths to be expected for the trade balance and the current account in the medium run, based on reasonable forecast assumptions for the main identified determinants? What are the implications of high remittances for the competitiveness in the short and long-run? How can Nepal maximize the positive impact of remittances in the economy? The authors assess the impact of remittances on Nepal's real exchange rate and attempt to distinguish between their short and long term impact. To conclude, efforts to increase savings and improve the allocation of remittances should also be accomplished through improvements in the overall investment climate and the business environment.
format	Report
author	Portugal, Alberto Zildzovic, Emir
author_facet	Portugal, Alberto Zildzovic, Emir
author_sort	Portugal, Alberto
title	From Evidence to Policy Supporting Nepal’s Trade Integration Strategy : Trade Imbalances and Remittances
title_short	From Evidence to Policy Supporting Nepal’s Trade Integration Strategy : Trade Imbalances and Remittances
title_full	From Evidence to Policy Supporting Nepal’s Trade Integration Strategy : Trade Imbalances and Remittances
title_fullStr	From Evidence to Policy Supporting Nepal’s Trade Integration Strategy : Trade Imbalances and Remittances
title_full_unstemmed	From Evidence to Policy Supporting Nepal’s Trade Integration Strategy : Trade Imbalances and Remittances
title_sort	from evidence to policy supporting nepal’s trade integration strategy : trade imbalances and remittances
publisher	World Bank, Washington, DC
publishDate	2016
url	http://documents.worldbank.org/curated/en/2016/07/26584622/evidence-policy-supporting-nepal’s-trade-integration-strategy-policy-note-1 http://hdl.handle.net/10986/24923
_version_	1764457917257351168

From Evidence to Policy Supporting Nepal’s Trade Integration Strategy : Trade Imbalances and Remittances

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