Does Agricultural Export Promote Nepalese Economic Growth? ARDL Approach Using Structural Break

Abstract

This study examines the impact of agricultural export on the economic growth in Nepal for the time period of 1970-2015. In this analysis, researchers used the ARDL model using structural break to investigate the relationship between agricultural exports and economic growth in Nepal. Agricultural land, exchange rate, foreign direct investment, trade openness and agricultural environmental pollution have all been included in this analysis. According to estimates, ARDL, tend towards short-run relationship has been validated. Whereas, in the long-run relation we found negative relation. Furthermore, this study found that agricultural land is directly affecting economic growth. This study recommends policies that improve agricultural production and trade should be strongly pursued to help boost a country’s economic growth