Journal of Economics Students https://nepjol.info/index.php/joess <p>Journal of Economics Students (JoESS) is an annual publication of Economic Students’ Society (ECOSS), Central Department of Economics (CEDECON), Tribhuvan University, Kirtipur, Kathmandu, Nepal. JoESS invites scholarly articles from students, professionals, researchers, and academicians on the issue of economic science. The primary objective of JoESS is to publish articles and research papers on economic issues of Nepal along with other countries in the world.</p> en-US <p>This license enables reusers to distribute, remix, adapt, and build upon the material in any medium or format, so long as attribution is given to the creator. The license allows for commercial use.</p> ecossnepal@gmail.com (Prem Karki) sioux.cumming@ubiquitypress.com (Sioux Cumming) Fri, 10 May 2024 12:56:35 +0000 OJS 3.3.0.6 http://blogs.law.harvard.edu/tech/rss 60 The Causality between Economic Growth and Public Debt in Nepal: Toda-Yamamoto Approach https://nepjol.info/index.php/joess/article/view/65688 <p>This research paper investigated the causality between economic growth and public debt in Nepal using the time series data from 1975 to 2020. The study applies the Granger non-causality procedure developed by Toda and Yamamoto in a vector autoregression (VAR) model. Variables are real GDP, foreign debt, domestic debt and foreign currency reserve. The empirical results point out that one-way Granger causality running from real gross domestic product to domestic debt whereas foreign debt cannot be caused by all three variables. Similarly, foreign currency reserve also cannot be caused by all three variables. No causality between foreign currency reserve and domestic debt is found. Surprisingly internal debt cannot affect real gross domestic product. This result reveals that rather one-way Granger causality running from foreign currency reserve and foreign debt to real gross domestic product for the mentioned time period. No unidirectional causality among the variables was found in the result. The policymakers should take into consideration of this conclusion and should adopt more structural reforms to collection of domestic debt.</p> Rajan Phaju, Rupak Khadka Copyright (c) 2023 The Author(s) https://creativecommons.org/licenses/by/4.0 https://nepjol.info/index.php/joess/article/view/65688 Sun, 31 Dec 2023 00:00:00 +0000 New Keynesian and New Classical Debate on Contemporary Macroceconomic Development: Review https://nepjol.info/index.php/joess/article/view/65689 <p>This paper analyzes the extended debate between two schools of economic thought – Keynes and Classics with recently updated ideas noted as New Keynesianism (NK) and New Classicism (NC). Here, ideas on Keynesian and classical economics, their similarities, differences, successes, applicability and criticisms has been studied comparatively through descriptive analysis of previous articles from researchers and renowned economists since decades before. The paper suggests that the nomenclature issue between these macroeconomic developments is more than a terminological debate that points out what should be the current issue between Keynesians and Classicals. There are both similarities and differences within the schools of thoughts. The analysis shows the assumptions, criticisms and successes of two of these schools of economic thought viz. NC and NK and explains which of them is appropriate to be applied for assessing policy, monetarism and business cycle theory. Nevertheless, no matter how much they criticize and compete with one another or how many theories and explanations are added, their core remains the same while their applicability always differs in accordance to time and place.</p> Bhumika Mool Copyright (c) 2023 The Author(s) https://creativecommons.org/licenses/by/4.0 https://nepjol.info/index.php/joess/article/view/65689 Sun, 31 Dec 2023 00:00:00 +0000 Demographic and Economic Center of Gravity of Nepal https://nepjol.info/index.php/joess/article/view/65690 <p>In this paper, an attempt has been made on determination of the Demographic Center of Gravity (DCG) and Economic Center of Gravity (ECG) of Nepal The results are then used for the study of historical demographic dynamics and present spatial heterogeneity in distribution of population and economic activities across the country. Census data from 1971-2021 shows the net shift of DCG of Nepal by about 12.5 km toward South-West direction with location in 2021 being at 84.588°E 27.648°N, Khairhani Municipality, Chitwan. Likewise, the ECG of Nepal in FY 2020/21 was at 84.780°E 27.655°N, near the tri-junction point of Chitwan, Makawanpur and Dhading districts. Due to unavailability of enough historical data of Provincial Gross Domestic Product (PGDP), the historical shift in ECG couldn’t be traced. Besides this, the Geographic Centroid (GC) of Nepal is estimated being at 83.920°E 28.277°N, Pokhara, Kaski. From these findings, it is seen that the DCG and ECG lie towards the South-East of GC of Nepal suggesting that the population and economic activities of Nepal is more concentrated on the southern Terai part of Nepal than Hills and inclined toward Eastern part of Nepal than the West.</p> Milan Maharjan, Sandu Subedi Copyright (c) 2023 The Author(s) https://creativecommons.org/licenses/by/4.0 https://nepjol.info/index.php/joess/article/view/65690 Sun, 31 Dec 2023 00:00:00 +0000 Government Expenditure and Economic Growth: A Cross-Country Analysis https://nepjol.info/index.php/joess/article/view/65691 <p>This paper empirically analyses the relationship between Economic Growth measured in terms of GDP Growth and Government Expenditure, GDP and Population. It employs annual cross-section time series data of the concerned variable of 117 countries from 2001 to 2021. Random Effect model was used for the analysis. The pool-ability of data is tested by the Breusch and Pagan LM test which confirmed that Pooled OLS is not appropriate for the model. The Hausman Specification Test was then conducted for choosing between the Fixed Effect or Random Effect model. The Hausman Specification Test for the Model suggests the Random effect model is appropriate for the analysis of the data. Thus, Random effect regression is used to find the consequences of explanatory and the control variables on the dependent variable. Government Expenditure as an explanatory variable has a positive relationship with the Economic Growth, even in the case of controlling for Population and the Trade Openness. Both the control variable is depicted to have positive relationship with the Economic Growth.</p> Sanjeev Nhemhafuki Copyright (c) 2023 The Author(s) https://creativecommons.org/licenses/by/4.0 https://nepjol.info/index.php/joess/article/view/65691 Sun, 31 Dec 2023 00:00:00 +0000 Population Density and the Zipf’s Law: Insight into Nepali Cities https://nepjol.info/index.php/joess/article/view/65692 <p>This paper is focused to show there is population agglomeration in the context of Nepal along with a brief insight into other countries of the South Asian region on population agglomeration, also suggests some policy recommendations to accept the population agglomeration wisely. This study is a qualitative study that is conducted majorly reviewing the available literature. The finding of this paper suggests the population density of the major cities of Nepal follows Zipf’s Law closely with an R<sup>2</sup> value of 0.958. It is observed that the concentration of population in a certain city is very high. Due to this population concentration, a particular city may face numerous problems. And, such population concentration doesn’t come only with problems, there are some benefits that we can obtain from this concentration also.</p> Subin KC Copyright (c) 2023 The Author(s) https://creativecommons.org/licenses/by/4.0 https://nepjol.info/index.php/joess/article/view/65692 Sun, 31 Dec 2023 00:00:00 +0000