Basu Dev Lamichhane

This study aims to explore the relationship between economic growth and performance in Nepal, identifying key drivers for growth. Studying the nexus between economic growth and economic performance in Nepal is crucial for understanding how these factors interact within the nation’s specific context. Growth of gross domestic product (GDP) is represented as the primary indicator for evaluating economic performance, reflecting the overall well-being of a nation's economy. Economic performance encompasses a broader spectrum, including indicators such as employment rate, inflation, income distribution and overall economic stability. Using E-Views 10, a descriptive and analytical research approach has been applied to analyze time series secondary data from 1990–2021 using an econometric model. This study found that faster-growing economies typically experience increased jobs, higher investment, more exports, and often lower inflation. These relationships are part of a long-run equilibrium relationship. In the event of an economic shock disrupting this equilibrium, the economy tends to naturally return to the equilibrium over time. This study found that short-term causality running from lagged GDP, gross capital formation (GCF), exports, human development index (HDI), and employment ratio influence immediate GDP growth. These variables wield a short-term influence over GDP growth; for instance, a sudden surge in exports can prompt a temporary boost in economic growth. This indicates that there is a long-term sustained link between GDP growth and the independent variables rather than merely a short-term event.

This study aims to analyze the reliability of Nepal’s industrial policies, focusing on the effects of macroeconomic variables on implementation and outcomes. This paper assesses Nepal’s industrial policies, emphasizing the need for improvements, export promotion, and human capital development while recognizing the importance of strategic planning and context-specific approaches for economic growth, stability, and development. The analytical and descriptive approaches have been applied to analyze the data by collecting secondary data sources that include official publications, which encompass 47 time series variables from 1974 to 2020. The findings provide mixed evidence for the economic impacts of liberalization, with exports and liberalization driving overall GDP growth. In contrast, other factors like economic openness, tourism, and their relationship with industrial GDP remain statistically insignificant. The paper indicates that remittances and investment have the most substantial impact on GDP, raising it by 1.86 and 1.21 units per unit increase, respectively. Exports have a moderate impact on industrial GDP (0.403 units). Export-oriented industries and tourism lack significant associations with either type of GDP. Liberalization significantly boosted both GDP and industrial GDP, with an increase of 179465.3 and 49595.62 units, respectively. Imports also jumped post-liberalization, driven by higher remittances as 1.215 units per unit increase. This study on industrial policies in developing economies, focusing on Nepal, adds valuable insights. The findings can ensure policymaking, boost economic growth, and strengthen Nepal’s industrial sector.

Nepal’s non-life insurance sector holds immense potential to drive economic growth and boost the nation towards a secure financial future. Embracing this potential is a goal and a pivotal catalyst for substantial change. The study aims to determine how the non-life insurance sector can drive economic growth in Nepal. The methodology of this study uses quantitative analysis of financial data from 2013 to 2022 from 20 non-life insurance companies in Nepal and econometric modeling to assess the sector’s impact on economic growth. Using Panel EGLS (Estimated Generalized Least Squares) regression analysis, the findings show that with one-unit increments in total investment, total premium, and total tax paid, GDP is expected to change by approximately 591.52, –920.54 and 8,470.65 units, respectively. In contrast, the coefficient for total profit is –910.3477 and is not statistically significant. The study’s main conclusion implies that the insurance sector contributes to the country’s economic growth by investing in productive activities and paying taxes to the government. Still, it also imposes a cost on the economy by charging high premiums to the insured. The profitability of the insurance sector does not affect the GDP, which indicates that the insurance sector is competitive and efficient or that other factors determine the GDP besides the insurance sector. This study contributes to a deeper understanding of the non-life insurance sector’s role in Nepal’s economic development and informs evidence-based policy decisions.

Tax compliance is the determining factor in tax report submission, enhancing tax awareness. A low level of tax compliance (TC) directly affects the government revenue and low inflow of information regarding taxpayers. This study uses descriptive and explanatory research approaches to identify determinants of residential rental income tax compliances (TC) among property owners in Kathmandu Metropolitan City, Nepal. A total of 1,129 structured questionnaires were distributed among the households of Kathmandu Valley for the cross-sectional and primary data, and only 500 (44.29 percent) useful responses were received from the respondents as the population was unknown. The response rate exceeds the estimated sample size of 384. The findings revealed a significant positive impact of tax rate on tax compliances (r = 0.329**, P<0.05). Fines and penalty (FP) and tax compliance (TC) found a positive and significant association depicting (r =.398**, P<0.05). Similarly, there was a positive and significant relationship (r = .612**, P<0.05) between attitudes and perception (AP) and tax compliance (TC). Moreover, a positive and significant association was found (r =.410**, P<0.05) between tax knowledge (TK) and tax compliance (TC). Furthermore, tax policy (TP) was positively and significantly associated (r = .440**, P<0.05) with tax compliance (TC). This study enhances taxpayers’ knowledge and helps to execute the policies to increase the efficiency and transparency of the tax system in Nepal.

Acknowledgment
The authors would like to express their gratitude to Prof. Dr. Achyut Gnawali and Mr. Prem Bahadur Budhathoki, Associate Professor, and Dr. Gangaram Bishowakarma, Assistant Professor of Tribhuvan University, Kathmandu, Nepal, for extending warm support towards the research work through the academic inputs.