The Lumbini Journal of Business and Economics 2023-04-25T16:00:11+00:00 Assoc. Prof. Rajendra Lamsal Open Journal Systems <p>The Lumbini Journal of Business and Economics (LJBE) is a peer-reviewed journal published by the Research and Development Department of Lumbini Banijya Campus, Butwal, Nepal. It publishes research manuscripts in the field of business and economics.</p> Editorial Note Vol.11(1) 2023-04-22T09:35:23+00:00 Rajendra Lamsal <p>The Lumbini Banijya Campus' Department of Research and Development (DRD) has been unwaveringly committed to elevating the region’s research quality. The publication of Vol. XI, No.1 issue of "The Lumbini Journal of Business and Economics (Special Issue)" is a testament to the DRD's unwavering dedication in this regard. The issue has been crafted to meet the contemporary needs of the business and economic environment in Nepal.</p> <p>The journal’s editorial board extends its sincere appreciation to the contributors of the International Seminar on Redefining Management Education in Nepal for their invaluable research papers and insightful comments, which added vitality to the journal. Furthermore, the editorial board is thankful to the President of the Campus Management Committee, Mr. Motilal Pandey, the Campus Chief, Prof. Dr. Tara Prasad Upadhyaya, and the faculty, staff, and students of Lumbini Banijya Campus for their invaluable support in shaping the final version of the issue.</p> <p>The Vol. XI, No. 1 issue comprises twenty-six research papers of diverse perspectives catering to Nepal's current business and economic environment. Although the editorial board has endeavored to eliminate all errors, it acknowledges that mistakes are inherent to the human condition. Therefore, the editorial board is receptive to constructive feedback as a positive means to improve the journal in future editions.</p> <p>In conclusion, the editorial board acknowledges and extends its sincere gratitude to all members for their tireless support in bringing the Vol. XI, the No. 1 issue to fruition, hopes the journal will provide insightful contributions to business and economics.</p> <p>&nbsp;</p> <p><strong><em>Editor-in-chief April 2023</em></strong></p> 2023-04-25T00:00:00+00:00 Copyright (c) 2023 Rajendra Lamsal Looking Employee Retention through the Lens of Employer Branding 2023-04-22T09:59:53+00:00 Bhagawati Pd Chaudhary Megh Nath Khanal <p>The study intends to investigate the interplay between Organizational Branding and Employee Retention in Commercial Banks. Data for the study was collected through simple random sampling technique from 209 employees of commercial bank on five points likert scale through a self administrative questionnaire. Among 209 questionnaires distributed 198 questionnaires were filled completely and remaining was incomplete having response rate95 percent. Descriptive and casual comparative research design was used to conduct the research study using the Mean, Standard deviation, Correlation and Regression approaches. The findings revealed that standardized beta coefficients of that Social Value, Development Value, Work-life Balance and Economic Value is on higher side which implies that employee retention is more influenced by these factors. Development value is a necessary and crucial value for retention of employees. Manager’s should prioritize recognition and appreciation among the employees for better performance and retention. Likewise, manager’s should focus more on establishing healthy relationship among supervisors and subordinates for encouraging all employees. Moreover, today’s workers expects balance between work and personal life, thus employers should provide flexible work culture in favor of employees to motivate and retain them successfully, Furthermore, employers should formulate policies of paying competitive pay and benefits for employee motivation and retention. Two new variables i.e. Work life Balance and Management Value have been added under the roof of Employer Branding to test its effect on Employee Retention.</p> 2023-04-25T00:00:00+00:00 Copyright (c) 2023 Bhagwati Pd Chaudhary, Megh Nath Khanal [RETRACTED] Job Insecurity and Employee’s Performance: Examining through the Perspective of Psychological Strains and Leverages 2023-04-22T10:10:51+00:00 Rajesh Shahi Niraj Gautam <p><strong>RETRACTION NOTICE:</strong><br />Due to a high level of overlap with the article listed below, this article was retracted on 3<sup>rd</sup> July 2023.</p> <p>Darvishmotevali, M., Arasli, H. and Kilic, H. (2017), "Effect of job insecurity on frontline employee’s performance: Looking through the lens of psychological strains and leverages", <em>International Journal of Contemporary Hospitality Management</em>, Vol. 29 No. 6, pp. 1724-1744. <a class="intent_doi_link Citation__identifier__link" title="DOI:" href=""></a></p> <p> </p> <p> </p> 2023-04-25T00:00:00+00:00 Copyright (c) 2023 Rajesh Shahi, Niraj Gautam Impact of Cognitive Biases on Investment Decisions of Investors in Nepal 2023-04-22T10:17:12+00:00 Sumit Dhakal Rajendra Lamsal <p>This study examines the impact of cognitive biases on the investment decisions of Nepalese stock market investors using a self-administered questionnaire as the primary data collection method. By analyzing a sample of 234 respondents, the research investigates the influence of six cognitive biases: overconfidence bias, herding bias, representativeness bias, anchoring bias, loss-aversion bias, and confirmation bias. The study used both descriptive and inferential statistical tools to analyze the data. The findings reveal that a significant proportion of respondents exhibited either high or moderate levels of bias, suggesting it to be a concerning issue. The study found that representativeness bias had the strongest effect on investment decision-making, followed by herding and anchoring biases. These results suggest that cognitive biases can significantly affect the investment decisions of Nepalese investors and may have negative consequences for their investment outcomes. The study recommends that investors be aware of these biases and take measures to reduce the impact on decision-making.</p> 2023-04-25T00:00:00+00:00 Copyright (c) 2023 Sumit Dhakal, Rajendra Lamsal Start-Up and Perceived Entrepreneurial Intention of Master-Level Students of Management 2023-04-22T10:28:09+00:00 Sagar Pokhrel <p>Various circumstances may influence the entrepreneurial intent of students. The likelihood that a student will engage in entrepreneurial action in the future depends on their entrepreneurial intention. The major goal of the study is to comprehend how master's level management students from Butwal Sub-Metropolitan City's entrepreneurial purpose is influenced by attitude toward behavior, subjective norms, perceived behavioral control, entrepreneurship education, and personality features. Distribution of survey questionnaires to respondents at several master's level management colleges in Butwal is how the basic data for this study was obtained. Of the 271 successful responses, 271 were considered in the analysis. Every variable is subjected to Cronbach's alpha reliability test, which ensures high-reliability results. In this study, multiple linear regression analysis and Pearson's correlation coefficient are used to analyze the observed independent variables (i.e. attitude towards behavior, subjective norms, perceived behavioral control, entrepreneurship education, and personality traits). The association between each factor and entrepreneurial intent is important. The study's findings show that most master's level management students are planning to participate in entrepreneurial projects in the future, which is positive. To raise student knowledge of career options as entrepreneurs, policymakers and academics must get involved early in the process of providing entrepreneurship education. To increase students' motivation, family, friends, and relatives must be encouraged to provide structural support.</p> 2023-04-25T00:00:00+00:00 Copyright (c) 2023 Sagar Pokhrel Entrepreneurial Intention of Management Graduates 2023-04-22T10:32:00+00:00 Sanju Gaire Tara Prasad Upadhyaya <p>The study analyzes the Entrepreneurial Intention of management graduates. Personal Attitude, Perceived Behavioral Control, Subjective Norms, Structural Support, and Entrepreneurship Education were used to explain the dependent variable–Entrepreneurial Intention. To fulfill the objective of this study, 240 primary data samples on a Likert scale were collected via. Digital communication platform. The data were then analyzed using descriptive statistics, independent t-test, one-way ANOVA, test and multiple regressions. The study showed that Personal Attitude, Perceived Behavioral Control and Subjective Norms had a positive significant impacted on Entrepreneurial Intention of management graduates. However, Structural Support and Entrepreneurship Education did not have significant impact on Entrepreneurial Intention.</p> 2023-04-25T00:00:00+00:00 Copyright (c) 2023 Sanju Gaire, Tara Prasad Upadhyaya Impact of Information and Communication Technologies (ICTs) on Rural Marketing & Development with Reference to selected Villages in India 2023-04-22T10:39:19+00:00 Saumyabrata Nath Manisha Chaudhary Bahrullah Safi Rita Biswas R Sangeetha <p>Information is power and power is information. Without information there can be no growth. Now information is penetrating into rural India as well, because without its presence there, we cannot think about development of the entire country. India is in the midst of a knowledge revolution, complemented by the opening up of entirely new-vistas in information and communication technology. Information and Communication Technology (ICT) has emerged as an effective facilitator in the development of any society and is a prime driving force in the growth of rural economies. The Rural Market of India is showing an impressive growth largely due to changing lifestyle patterns, better communication network and rapidly changing demand structure of consumers of rural area. With the changing patterns of Rural Market, the role of ICT has increased from providing only the Networks to set-up the basis of updated technological programs in the rural area. It is widely believed that Information and Communications Technologies (ICTs) are effective tools in the development of rural India. Rural people are less knowledgeable rather than their city counterparts. Thus, technological advancement is necessary for every nook and corner of India.</p> 2023-04-25T00:00:00+00:00 Copyright (c) 2023 Saumyabrata Nath, Manisha Chaudhary, Bahrullah Safi, Rita Biswas, R Sangeetha Green Knowledge Management as a Predictor of Green Innovation in Cement Industries: the role of Green Innovation Culture 2023-04-22T10:51:26+00:00 Supuspa Bhattarai <p>The purpose of this research paper is to reveal the relationships among green knowledge management, green innovation, and green innovation culture. These relationships were assessed using correlation analysis and hays process macro. Data were gathered from full-time cement factory employees having designations officers and above (N: 260) in the Lumbini Dhakdhai industry corridor region of Nepal. The results indicate that green knowledge management has a positive effect on green innovation and green innovation culture. Accordingly, green knowledge management is an important determinant of green innovation and green innovation culture. In addition, green innovation culture acted as a complementary partial mediator of the effects of green knowledge management on green innovation. Specifically, green knowledge management predicted green innovation, which in turn predicted green innovation culture. Finally, considering that causal studies on green knowledge management, green innovation and green innovation culture in the cement industry are limited, this study may contribute to understanding how green knowledge management affects green innovation in the cement industry.</p> 2023-04-25T00:00:00+00:00 Copyright (c) 2023 Supuspa Bhattarai1 Impact of working capital ratios on profitability in selected four-wheeler automobile companies 2023-04-22T10:56:03+00:00 Abdul Rahman <p><strong>Purpose: </strong>The purpose of this study is to assess whether or not working capital ratios have an impact on the profitability of selected four-wheeler automobile companies.</p> <p><strong>Design/methodology/approach: </strong>To assess the working capital management ratios on profitability in selected four-wheel automobile companies, the author applied the coefficient of correlation, correlation matrix, and multiple regression analysis methodology in selected four-wheel automobile companies listed on the CMIE prowess and secondary data considered also in annual reports. Ten passenger car manufacturing companies were selected for the period between 2011–12 to 2020–21, to choose a sample from the universe for research purposes., the purposive (judgmental) selection method is preferred for secondary data. Six different working capital component ratios (current ratio (CR), liquidity ratio (LR) are moderate ratios, working capital turnover ratio (WCTR), inventory turnover ratio (ITR), receivables turnover ratio (RTR), and cash turnover ratio (CTR)) are independent ratios have been measured for their impact on profitability using the coefficient of correlation and regression. Profit before tax to asset ratio (PBT/Total assets (dependent ratio).</p> <p><strong>Findings: </strong>The study found that Working capital ratios (CR, QR, WCTR, ITR, RTR, and CTR) are positively correlated with profitability ratios. Of the six working capital component ratios, five of them are significant at a 5-percentage level, except cash turnover ratios.</p> <p><strong>Contribution/Originality:</strong> Managers at four-wheeler companies need to improve the efficiency and effectiveness of the firm's financial management to avoid working capital ratios that put the company in jeopardy. To help with investing decisions, it may be used as a benchmark of firms who have demonstrated strong financial success.</p> 2023-04-25T00:00:00+00:00 Copyright (c) 2023 Abdul Rahman Investor Bias: A Case of Nepalese Investor Perspective 2023-04-22T11:04:14+00:00 Bikash Rana <p>Behavioral finance incorporates the field of psychology into finance and studies the behavior of individual which are guided by behavioral biases. The current study aims to examine the behavioral biases which can be seen in Nepalese stock investor and studies if the behavioral biases affect the financial decisions of investor or not. The study tested the following behavioral bias: Loss Aversion, Overconfidence, Optimism, Mental Accounting, Illusion of Control, Confirmation and Status Quo Bias. The data was collected from 136 respondents. The sample size was set as minimum of 120 on the basis of rule of thumb of Roscoe (1975). Likewise, four in-depth interviews were taken in order to collect response from institutional investor. The number of interviews for institutional investor was determined on the basis of Rao soft Sample Size Calculator. The study showed that Loss aversion, overconfidence and confirmation bias were correlated with financial decision making of the investor. The correlations were significant. But the regression analysis showed that there is influence of loss aversion, overconfidence and optimism bias in the financial decisions. Confirmation bias did not have significant relationship. Also, the behavioral bias as a whole affects the financial decisions. Likewise, the study also showed that status quo bias and mental accounting bias are prevailed in the institutional investor. These biases also influenced the individual investor financial decisions. As a whole the study shows that Nepalese investor are influenced by behavioral biases<em>. </em></p> 2023-04-25T00:00:00+00:00 Copyright (c) 2023 Bikash Rana Impact of Liquidity Management on Profitability of Joint Venture Commercial Banks in Nepal 2023-04-22T11:15:33+00:00 Binaya Shrestha Sneha Chaurasiya <p>This study investigates the Impact of Liquidity Management and Profitability of Joint Venture Commercial Banks in Nepal. Data analysis was done using descriptive statistics, Pearson correlation, regression analysis, and t-test. The data used to analyze five (5) samples size, out of 27 which has found to be covering period 2012-2021 of joint venture commercial Banks in Nepal. The Liquidity management represents the variables of the Credit Deposit Ratio (CDR), Capital adequacy ratio (CAR), Current Reserve ratio (CRR), Total deposit to total ratio (TDTAR), Total loan to total assets ratio (TLTAR) and the profitability including Return on Assets (ROA). The findings of the study have a R square value of 0.615 meaning that 61.5% of the variation in the dependent variable is explained by the independent variables while 38.5% is explained by other variables outside the model and also showed that there is a strong positive correlation between the dependent variable and the set of independent variables. The result showed that there is significant impact of TLTAR on ROA and there is insignificant impact of CDR, CAR, CRR and TDTAR on ROA of joint venture commercial banks in Nepal.</p> 2023-04-25T00:00:00+00:00 Copyright (c) 2023 Binay Shrestha, Sneha Chaurasiya Executive compensation and firm performance: Evidence from Nepalese commercial banks 2023-04-22T11:21:55+00:00 Inju Gyawali <p>NRB provision to relate executive’s fixed annual compensation with staff salary and total assets of the respective Banks is different from those of other country (Bhatta, 2010). This is the first study to examine the relationship between executive compensation and firm performance in Nepalese banking industry. Data are collected from 21 commercial banks from the study period 2014/15 to 2020/ 21. Panel data are analyzed through pooled OLS and fixed effect model by using three control variables (i.e. Leverage, size and risk). Result showed that executive compensation is not influenced by firms performance in Nepalese commercial banks. Result also revealed that pay performance relationship is not influenced by size of the firms. It is concluded that possible reason for this insignificant relationship is contradict and impractical compensation directives issued by NRB, as claimed by (Bhatta,2010)</p> 2023-04-25T00:00:00+00:00 Copyright (c) 2023 Inju Gyawali Effect of firm specific factors and reinsurance on performance of Nepalese Insurance Companies 2023-04-22T11:26:18+00:00 Narayan Wosti Sumit Pradhan <p>This study examines the effect of firm specific factors and reinsurance on performance of Nepalese insurance companies. Return on assets (ROA) and return on equity (ROE) are the dependent variables. The selected independent variables are firm size, liquidity, assets tangibility, net claim ratio, net commission ratio and ratio of ceded reinsurance. The study is based on secondary data of 16 insurance companies with 124 observations for the period from 2013/14 to 2020/21. The data are collected from the annual reports of the selected insurance companies and annual report published by Rastriya Beema Samiti. The regression models are estimated to test the significance and effect of firm specific factors and reinsurance on performance of Nepalese insurance companies.</p> <p>&nbsp;</p> 2023-04-25T00:00:00+00:00 Copyright (c) 2023 Narayan Wosti, Sumit Pradhan Factors Affecting the Performance of the Mutual Fund in Nepal 2023-04-22T11:32:53+00:00 Netra Bahadur Thapa Gharti Rajendra Lamsal <p>This study examines macro and micro factors affecting Nepalese mutual fund results. This study used panel data from March 2016 to November 2022 to determine the success factors of Nepal's 16 mutual funds.</p> <p>Nepalese mutual funds' irregular performance is due to national economic conditions and individual fund peculiarities. This research analyzes the influence of economic events and fund attributes on the performance of Nepalese mutual funds by using risk-adjusted returns proposed by William Sharpe (1994). This research evaluated how macroeconomic and fund-factor changes affected Nepal's mutual funds.</p> <p>The results show a positive relationship between fund age, assets turnover ratio, fund size, and exchange rate. Liquidity is a non-factor in mutual fund performance, but growth in gross domestic product, inflation, interest rates, and the money supply (M2) all harm fund return. Managers of mutual funds are encouraged to follow the recommendations made in this study to keep their portfolios as diversified as possible.</p> 2023-04-25T00:00:00+00:00 Copyright (c) 2023 Netra Bahadur Thapa Gharti, Rajendra Lamsal Farmers' perception and awareness towards agriculture insurance as a tool of risk management in Kaski and Chitwan Districts of Nepal 2023-04-22T11:41:17+00:00 Rabindra Ghimire Ram Krishna Chapagain Dhana Bahadur Jagari Lalit Bahadur Shahi <p>This study aims to assess farmers' awareness and perception towards agriculture risk management and insurance in Nepal's Kaski and Chitwan districts. Despite agriculture being the primary occupation for more than 60% of the population, the contribution of agriculture to GDP remains at 23%. Agriculture insurance is a new concept in Nepal, and the growth of the insurance market has been unimpressive over the past twelve years. The study's sample consists of existing agriculture insurance policyholders who have received or are in the process of receiving claims. Data was collected using a structured questionnaire from 200 respondents in Bharatpur and 200 respondents in Pokhara Metropolitan city, with a five-point Likert scale measuring awareness and perception. Results suggest that farmers are generally aware of the risks associated with agriculture and perceive insurance to be a useful scheme. Trust between farmers and insurance companies is deemed essential for insurance to succeed. Economic and claims-related factors were found to be more influential than family size and education, while the sex and age of respondents were insignificant. The study implies that while insured and claim-recipient farmers have a fair awareness of agriculture insurance, they lack traditional risk management techniques</p> 2023-04-25T00:00:00+00:00 Copyright (c) 2023 Rabindra Ghimire, Ram Krishna Chapagain, Dhan Bahadur Jagari, Lalit Bahadur Shahi The Need of Cognitive Behavioural Therapy (CBT) for Capital Market Investors of Northern India – An Empirical Analysis 2023-04-22T16:47:40+00:00 Shivam Sukla Deepak Babu Sudhir Kumar Shukla Dinesh Prasad <p>The sudden and rapid growth of Indian capital markets has not only attracted global attention but has also propelled Indian people to invest in the markets, but there is a sizeable portion of such investors who have not actually been supposedly rational at making investment decisions and have ended up committing behavioural blunders with their capital market investment decisions which are giving them mental trauma and sleepless nights.</p> <p>This study is the first of its kind on a global level where a total of 168 randomly selected capital market investors were asked to fill up a survey questionnaire aimed at testing the presence of five most prominent cognitive disorders (anxiety, panic attack, addiction, anger and eating disorder) among the capital market investors of India and the extent to which these disorders impact the stock investment decisions of Indian investors.</p> <p>The results of the study show that cognitive disorders are not only closely associated with the investment decisions of Indian investors but also carry a significant impact on their market investment decisions. Moreover, there are considerable differences in opinions of investors across their socio-demography at 95% significance level (p&lt;0.05) which gives a clear indication that Indian investors do need cognitive behavioural therapy to become more refined and sagacious at making capital market investments.</p> <p>CBT has proven to be very helpful in treating a variety of mental illnesses in the past. Therefore, owing to the presence of cognitive disordersamongcapital market investors of India CBT can be of great help in developing an understanding of capital markets among investors by making them mindful of the unfavorable and frequently unreasonable considerations which adversely affect their sentiments, temperaments and subsequent market earnings.</p> 2023-04-25T00:00:00+00:00 Copyright (c) 2023 Shivam Sukla, Deepak Babu, Sudhir Kumar Shukla, Dinesh Prasad Effect of firm specific and macroeconomic factors on profitability of Nepalese insurance companies 2023-04-22T17:02:04+00:00 Sujan Khadka <p>This study examines the effect of firm specific and macroeconomic factors on profitability of Nepalese insurance companies. Return on asset and return on equity are selected as the dependent variables. Similarly, firm size, liquidity, tangibility, dividend per share; premium growth, inflation, gross domestic product and money supply are selected as the independent variables. This study is based on secondary data of 16 insurance companies with 124 observations for the study period from 2013/14 to 2020/21. The data were collected from collected from reports published by the insurance board of Nepal, annual reports of respective insurance companies and World Bank database. The correlation coefficients and regression models are estimated to test the significance and importance of firm specific and macroeconomic factors on the profitability of Nepalese insurance companies.</p> <p>The result showed that firm size have the negative impact on return on assets and return on equity. It indicates that the increase in the firm size leads to decrease the return on assets and return on equity. Similarly, the studies showed that liquidity rate have also the negative impact on return on assets and return on equity. It indicates that the increase in the liquidity leads to decrease the return on assets and return on equity. On the other hand, the studies found that tangibility have the positive impact on return on assets and return on equity. It shows that the increase in the tangibility leads to increase the return on assets and return on equity. Likewise, the studies found that dividend per share have the positive impact on return on assets and return on equity. It shows that the increase in the dividend per share leads to increase the return on assets and return on equity. Similarly, the studies found that premium growth have the positive impact on return on assets and return on equity. It shows that the increase in the premium growth leads to increase the return on assets and return on equity. Furthermore, gross domestic products have the positive impact on return on assets and return on equity. It means that increase in the gross domestic product have leads to increase the return on assets and return on equity. Moreover, inflation has the negative impact on return on assets and return on equity. It shows that increase in the inflation leads to decrease the return on assets and return on equity. Likewise, money supply has the negative impact on return on assets and return on equity. It indicates that the increase in the money supply leads to decrease the return on assets and return on equity of Nepalese insurance companies.</p> 2023-04-25T00:00:00+00:00 Copyright (c) 2023 Sujan Khadka Public Service Motivation and Ethical Behavior amid Challenge Stressors 2023-04-22T17:07:29+00:00 Ramesh Raj Ghimire <p>This study aims to investigate the relationship between Public Service Motivation (PSM) and ethical or unethical behaviors in the context of work stressors. A survey was conducted on 300 public sector employees in Nepal using structured questionnaires with a seven-Likert scale. The study used a deductive approach to examine the association between PSM and ethical behavior in situations of challenge stressors at work. The research found that high levels of PSM are linked to high levels of ethical behavior intentions, and this relationship is further strengthened in the presence of challenge stressors as a positive moderator. The study also highlights the challenges of self-reported measures and social desirability bias when observing ethical or unethical behavior. The primary variables observed in the public sector of Nepal were PSM, ethical behavior, and challenge stressors, with only three variables and a limited sample size being the major limitations. Overall, this study suggests that the use of PSM as a tool and creating workplace challenges may contribute to improving ethical conduct among public sector employees.</p> 2023-04-25T00:00:00+00:00 Copyright (c) 2023 Ramesh Raj Ghimire Effect of working capital management and credit management policy on financial performance of commercial bank in Nepal 2023-04-22T17:12:02+00:00 Sweta Maharjan <p>This study analyzes the impact of working capital management and credit management policy on the financial performance of Nepalese commercial banks. The study uses data from 16 commercial banks, collected from their annual reports, over the period from 2014/15 to 2021/22. The dependent variables considered are return on asset and return on equity, while the independent variables are working capital, loan to deposit ratio, capital adequacy ratio, non-performing loan, cash asset ratio, operating cash flow to total asset, and rate of bank’s ability to return deposits. The study finds that working capital, cash asset ratio, operating cash flow to total assets, and rate of bank’s ability to return deposits have a positive impact on bank return on assets and return on equity. On the other hand, loan to deposit ratio, capital adequacy ratio, and non-performing loan have a negative impact on both return on assets and return on equity. The study provides insights for the management of commercial banks to enhance their financial performance.</p> 2023-04-25T00:00:00+00:00 Copyright (c) 2023 Sweta Maharjan Effects of Fiscal Policy on Economic Growth: Empirical Evidence from South Asian Countries 2023-04-22T17:19:11+00:00 Hari Phullel <p>This study aims to find the effects of fiscal policy variables on economic growth in South Asian nations based on panel data of 21 years from 2001 to 2021.The study adopted descriptive and causal relationship research design. In this study, the correlation matrix is used to describe the relationship between variables, and the hausman test is applied to select&nbsp;the fixed and random effect models. The results revealed that gross capital formation and public debt had significant and positive effect on economic growth in South Asian countries. Tax revenue was found to have significant but negative effect on economic growth while government expenditure was found to have insignificant and positive effect on economic growth. The study therefore concludes that fiscal policy has significant relationship with economic growth in South Asian Countries. Additionally, efforts should be made while implementing fiscal reforms that focuses public expenditure to a manageable and specified economic sectors.</p> 2023-04-25T00:00:00+00:00 Copyright (c) 2023 Hari Phullel Banking Depth and Economic Growth of South Asian Countries 2023-04-22T18:19:35+00:00 Kajal Malla <p>This study aims to find the effect of banking depth on economic growth of South Asian countries. For analysis, different models are selected based on different tests (BP tests, Hausman tests) rather depending solely on the possible theoretical explanations. Six SAARC countries are selected for the study with data ranging from 1983-2020. The findings conclude negative and positive significant effect of credit flow to private sector and broad money respectively. Overall, banking depth has significant effect on GDP of SAARC nations. Meanwhile, gross domestic savings have significant positive contribution to GDP growth, whereas; inflation and gross capital formation negatively and positively insignificantly impact the economic growth respectively. These insignificances show the weakness of the economy in utilizing the credit and capital in the productive sectors of the economy. It further adds empirical evidence to existing finance-growth nexus in SAARC nations.</p> 2023-04-25T00:00:00+00:00 Copyright (c) 2023 Kajal Malla Impact of Capital Market on GDP Growth in Nepal 2023-04-22T18:24:26+00:00 Khimananda Bhandari <p>This study explores the connection between the capital market&nbsp;and Nepal's GDP growth from 1994 to 2002. The study examines how capital market performance affects the GDP growth of Nepal. The ARDL approach was used to examine the capital market's long-term effect on economic growth. To this extent, variables like market capitalization, gross fixed capital formation as investment, broad money supply, the NEPSE Index, the number of listed companies in NEPSE, and recurring expenditures were used in the system, affecting GDP growth. According to the study,&nbsp; the correlation shows the presence of a strong linkage between the capital market and GDP growth in Nepal. Findings show that the capital market has a significant influence on GDP growth. Negative and significant error correction terms indicate how quickly shocks and equilibrium are corrected. Some of the variables are insignificant in the short and long run, indicating the presence of structural and institutional lacks in Nepal's capital markets.</p> 2023-04-25T00:00:00+00:00 Copyright (c) 2023 Khimananda Bhandari Impact of Covid-19 Pandemic on FDI in Nepal 2023-04-22T18:29:11+00:00 Krishna Kumar Regmi <p>Foreign Direct Investment (FDI) and Foreign Aid is an essential source of economic development for developing countries. However, FDI depends on the economic environment, as do other development assistance depends on the country’s foreign diplomacy and relation. The study aims to find the impact of Covid-19 on FDI,inflow and other barriers for receiving FDI commitment in Nepal. The study is descriptive and analytical. Secondary data are used in the study. The Covid-19 pandemic has reduced FDI commitments funds as envisioned. However, pandemic is not the only barrier of investment commitment. Still, there are barriers such as business environment, poor infrastructure, lack of skilled human resource, political transitions, weak governance, natural calamities, and tax slab which are critical in Nepal. Although FDI in Nepal was in an upward trajectory till 2019, the COVID-19 pandemic has reduced it as the primary economic development source of Nepal.</p> 2023-04-25T00:00:00+00:00 Copyright (c) 2023 Krishna Kumar Regmi Effects of Public Debt on Economic Growth of Nepal 2023-04-22T18:32:58+00:00 Piamber Sapkota <p>This study aims to analyze the effect of public debt dividing into internal and external debt on economic growth rate of Nepal using time series data from 1990 – 2021 A.D. The Autoregressive Distributed Lag (ARDL) model is employed to investigate the effect as well as long – run and short – run relationship between economic growth and public debt. It is found that in long run, effect of internal debt upon the economic growth rate of Nepal is negative. Similarly, the long run effect of external debt upon the economic growth rate is positive and significant. The short run effect analysis result also shows that effect of external debt upon economic growth rate is positive. It indicates that effect of external debt upon economic growth rate is consistent in both long-run and short-run.&nbsp; Furthermore, the results show that there is also the long run relationship between the economic growth rate (i.e. RGDPgr) and internal debt, external debt. Similarly, the result of ECM analysis shows that there is also short-run relationship between economic growth rate and internal debt, external debt. Moreover, there is not found strong effect of public debt on economic growth of Nepal.</p> 2023-04-25T00:00:00+00:00 Copyright (c) 2023 Piamber Sapkota Structural Transformation and its Impact on Economic Performance in Nepal 2023-04-22T18:36:39+00:00 Sandhya Kafley Bishnu Joshi <p>The GDP of nation is contributed by three sectors (primary, secondary and service). The transformation of economy from one sector to another is called structural transformation. Structural Transformation has usually positive impact on economic growth of Nepal. This research aims to answer the questions about what are the effects of structural Transformation on growth in Nepalese economy. Economic performance is measured by Per Capita Income. This study tries to find out which sectors a government should make better strategies to uplift and which sector to give less priority based on its contribution on economic growth. Time series data from 1975 AD to 2020 AD have been taken. Auto Regressive Distributed Lag (ARDL) Model is used as econometric tool to analyze the data. The expected result is that there is a long run association between per capita GDP and sector wise GDP. Also there is a significant relationship in structural transformation and economic growth in Nepal. So government should give more concern to develop service sector followed by primary sector and secondary sector.</p> 2023-04-25T00:00:00+00:00 Copyright (c) 2023 Sandhaya Kafley, Bishnu Joshi Impact of Money Supply and Inflation on Economic Growth in Nepal 2023-04-22T18:41:11+00:00 Santosh Kunwar Susmita Timilsina Sunil Nepal Prizma Shrestha Abhisek Shrestha Maya Gahatraj <p>The relationship between money supply and economic growth has been receiving more attention than any other subject in the field of monetary economics in recent years. Inflation is an increase in prices that can be translated as a decreases in purchasing power overtime. This paper examines the effect of money supply and inflation on economic growth from 1974/75 to 2020/21. The ARDL co-integration approach is used in the study to determine the relationship between the variables for determining if there is long term co-integration among variables where the bound test has been used. The Narrow Money, Broad Money and Consumer Price Indexare the independent variables respectively with GDPas the dependent variable. The whole dynamics of inflation in developing economies are different, so the idea that inflation is always a monetary phenomenon is important to revisit and reevaluate, especially in relation to developing economies. The study shows that CPI is positively related with economic growth. The evidence suggest that CPI has strong impact on economic growth in the developing countries like Nepal.</p> 2023-04-25T00:00:00+00:00 Copyright (c) 2023 Santosh Kunwar, Susmita Timilsina, Sunil Nepal, Prizma Shrestha, Abhisek Shrestha, Maya Gahatraj External debt and Economic Growth of Nepal 2023-04-22T18:51:09+00:00 Saurav Adhikari <p>This paper examines the effect of external debt and economic growth of Nepal over the period of 1978-2020.The external debt of Nepal has been significantly increasing during the study period. The objective of this study is to examine the effect of external debt &nbsp;on economic growth of Nepal by ARDL model. Descriptive and analytical research design has been used by using secondary data. The finding of the study concluded Balance of payment has&nbsp; positively significantly impact on the growth in GDP respectively at 5% level of significance. Total external debt and Total reserves haspositive insignificant effect economic growth respectively. The findings of this study revealed that increase in balance of payment increases the growth of the economy of Nepal. The optimal use of external debt should be for national growth in order to expand the size of the market, improve the skill and productivity of workers, decrease geographic fragmentation, and boost the profitability of private investment to increase the GDP of the country.</p> 2023-04-25T00:00:00+00:00 Copyright (c) 2023 Saurav Adhikari