Nepal : Trade and Competitiveness Study
This study analyzes Nepal's trade policies and performance, identifies constraints to increasing trade competitiveness, and recommends policy changes and technical assistance to improve trade performance. The study is timely, as Nepal's i...
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| Format: | Foreign Trade, FDI, and Capital Flows Study |
| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2003/10/6338516/nepal-trade-competitiveness-study http://hdl.handle.net/10986/14417 |
| id |
okr-10986-14417 |
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| recordtype |
oai_dc |
| 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 |
ACCESSION NEGOTIATIONS AGREEMENT ON TRADE AGRICULTURAL INCOMES AGRICULTURAL PRODUCTS AGRICULTURAL SUBSIDIES AGRICULTURE AIRLINES AVERAGE PRODUCTIVITY AVERAGE TARIFF AVERAGE TARIFF RATE BANKRUPTCY BANKRUPTCY LAW BORDER PRICES CAPACITY BUILDING CAPITAL MARKETS CHAMBERS OF COMMERCE COMMERCIAL DIPLOMACY COMMODITIES COMPARATIVE ADVANTAGE COMPETITION POLICY COMPETITION POLICY LEGISLATION COMPETITIVE ADVANTAGES COMPETITIVENESS CONCESSIONS CONSUMER GOODS CURRENCY CUSTOMS CUSTOMS CLEARANCE CUSTOMS DEPARTMENT CUSTOMS DUTIES CUSTOMS DUTY CUSTOMS POSTS CUSTOMS PROCEDURES DOMESTIC INDUSTRIES DOMESTIC MARKETS DOMESTIC TRADE DUMPING DUTY DRAWBACK DUTY-DRAWBACK SCHEME DUTY-FREE ACCESS ECONOMIC COMPETITIVENESS ECONOMIC COOPERATION ECONOMIC GROWTH ECONOMIC HISTORY ECONOMIC RATE OF RETURN ECONOMIC STRUCTURE ECONOMIC VOLATILITY EMPLOYMENT GROWTH EXCHANGE RATES EXPORT BASKET EXPORT COMPETITIVENESS EXPORT EARNINGS EXPORT GROWTH EXPORT INCENTIVES EXPORT PRICES EXPORT PRODUCTS EXPORT PROMOTION EXPORTERS EXPORTS EXTERNAL SHOCKS FACTOR MARKETS FINAL GOODS FINANCE FINANCIAL POSITION FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN INVESTMENT FOREIGN INVESTORS FORMAL TRADE FREE ACCESS FREIGHT GDP GLOBAL EXPORTS GLOBAL MARKET GLOBAL MARKETS GOVERNING INVESTMENT GROSS DOMESTIC PRODUCT GROWTH RATE GROWTH SCENARIO IMPORTS IMPROVING CUSTOMS INCOME INCOME EFFECT INCREASING COMPETITION INCREASING COMPETITIVENESS INCREASING TRADE INTELLECTUAL PROPERTY INTELLECTUAL PROPERTY RIGHTS INTERMEDIATE INPUTS INTERNATIONAL COMPETITION INTERNATIONAL ECONOMICS INTERNATIONAL TRADE INVENTORY INVESTMENT CLIMATE INVESTMENT INCENTIVES INVESTMENT POLICY ITC LABOR COSTS LABOR FORCE LABOR MARKET LABOR MARKET POLICIES LABOR MARKETS LABOR PRODUCTIVITY LANDLOCKED COUNTRIES LIVING STANDARDS LLC LOGISTICS COSTS LOGISTICS REQUIREMENTS LOW-INCOME COUNTRIES MACROECONOMIC MANAGEMENT MACROECONOMIC PERFORMANCE MACROECONOMIC STABILITY MANUFACTURING MARKET ACCESS MARKET ENTRY MARKET SHARE MINIMUM WAGE NATIONAL LOGISTICS NEIGHBORING COUNTRIES NET EXPORTS NON-TARIFF BARRIERS PER CAPITA INCOME POLICY REFORMS PREFERENTIAL TRADE PREFERENTIAL TRADE AGREEMENT PRIMARY GOODS PRIVATE INVESTMENT PRIVATE SECTOR PRODUCTIVITY PROPERTY RIGHTS PROTECTION RATES PUBLIC SECTOR PURCHASING POWER QUANTITATIVE RESTRICTIONS REAL EXCHANGE RATE REGIONAL AGREEMENT REGIONAL COOPERATION REGIONAL TRADE REGIONAL TRADE AGREEMENTS REGULATORY FRAMEWORK REGULATORY FRAMEWORKS REGULATORY REFORMS REVENUE LOSS ROAD TRANSPORT RULES OF ORIGIN SAFEGUARD MEASURES STRUCTURAL CHANGES TARIFF BARRIERS TARIFF BINDINGS TARIFF DISPERSION TARIFF LEVELS TARIFF RATE TARIFF RATES TARIFF REDUCTIONS TARIFF STRUCTURE TAX REVENUE TAXATION TECHNICAL ASSISTANCE TECHNICAL BARRIERS TECHNOLOGY TRANSFER TELECOMMUNICATIONS TOTAL FACTOR PRODUCTIVITY TOURISM TRADE TRADE AGREEMENT TRADE AND INVESTMENT POLICY TRADE BALANCE TRADE COMPETITIVENESS TRADE DATA TRADE DIVERSION TRADE FACILITATION TRADE FINANCE TRADE GROWTH TRADE IN GOODS TRADE INTEGRATION TRADE LIBERALIZATION TRADE NEGOTIATION TRADE PERFORMANCE TRADE POLICIES TRADE POLICY TRADE POLICY ANALYSIS TRADE PROMOTION TRADE REFORMS TRADE REGIME TRADE UNION TRADE UNIONS TRADE-RELATED INTELLECTUAL PROPERTY RIGHTS TRADING PARTNERS TRAFFIC TRANSACTION COSTS TRANSACTIONS COSTS TRANSIT TRANSIT ROUTES TRANSPORT COSTS TRANSPORT EQUIPMENT TRANSSHIPMENT UNEMPLOYMENT UNFAIR TRADE PRACTICES VALUATION VALUE ADDED WAGES WORLD MARKETS WORLD TRADE WORLD TRADE ORGANIZATION WTO |
| spellingShingle |
ACCESSION NEGOTIATIONS AGREEMENT ON TRADE AGRICULTURAL INCOMES AGRICULTURAL PRODUCTS AGRICULTURAL SUBSIDIES AGRICULTURE AIRLINES AVERAGE PRODUCTIVITY AVERAGE TARIFF AVERAGE TARIFF RATE BANKRUPTCY BANKRUPTCY LAW BORDER PRICES CAPACITY BUILDING CAPITAL MARKETS CHAMBERS OF COMMERCE COMMERCIAL DIPLOMACY COMMODITIES COMPARATIVE ADVANTAGE COMPETITION POLICY COMPETITION POLICY LEGISLATION COMPETITIVE ADVANTAGES COMPETITIVENESS CONCESSIONS CONSUMER GOODS CURRENCY CUSTOMS CUSTOMS CLEARANCE CUSTOMS DEPARTMENT CUSTOMS DUTIES CUSTOMS DUTY CUSTOMS POSTS CUSTOMS PROCEDURES DOMESTIC INDUSTRIES DOMESTIC MARKETS DOMESTIC TRADE DUMPING DUTY DRAWBACK DUTY-DRAWBACK SCHEME DUTY-FREE ACCESS ECONOMIC COMPETITIVENESS ECONOMIC COOPERATION ECONOMIC GROWTH ECONOMIC HISTORY ECONOMIC RATE OF RETURN ECONOMIC STRUCTURE ECONOMIC VOLATILITY EMPLOYMENT GROWTH EXCHANGE RATES EXPORT BASKET EXPORT COMPETITIVENESS EXPORT EARNINGS EXPORT GROWTH EXPORT INCENTIVES EXPORT PRICES EXPORT PRODUCTS EXPORT PROMOTION EXPORTERS EXPORTS EXTERNAL SHOCKS FACTOR MARKETS FINAL GOODS FINANCE FINANCIAL POSITION FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN INVESTMENT FOREIGN INVESTORS FORMAL TRADE FREE ACCESS FREIGHT GDP GLOBAL EXPORTS GLOBAL MARKET GLOBAL MARKETS GOVERNING INVESTMENT GROSS DOMESTIC PRODUCT GROWTH RATE GROWTH SCENARIO IMPORTS IMPROVING CUSTOMS INCOME INCOME EFFECT INCREASING COMPETITION INCREASING COMPETITIVENESS INCREASING TRADE INTELLECTUAL PROPERTY INTELLECTUAL PROPERTY RIGHTS INTERMEDIATE INPUTS INTERNATIONAL COMPETITION INTERNATIONAL ECONOMICS INTERNATIONAL TRADE INVENTORY INVESTMENT CLIMATE INVESTMENT INCENTIVES INVESTMENT POLICY ITC LABOR COSTS LABOR FORCE LABOR MARKET LABOR MARKET POLICIES LABOR MARKETS LABOR PRODUCTIVITY LANDLOCKED COUNTRIES LIVING STANDARDS LLC LOGISTICS COSTS LOGISTICS REQUIREMENTS LOW-INCOME COUNTRIES MACROECONOMIC MANAGEMENT MACROECONOMIC PERFORMANCE MACROECONOMIC STABILITY MANUFACTURING MARKET ACCESS MARKET ENTRY MARKET SHARE MINIMUM WAGE NATIONAL LOGISTICS NEIGHBORING COUNTRIES NET EXPORTS NON-TARIFF BARRIERS PER CAPITA INCOME POLICY REFORMS PREFERENTIAL TRADE PREFERENTIAL TRADE AGREEMENT PRIMARY GOODS PRIVATE INVESTMENT PRIVATE SECTOR PRODUCTIVITY PROPERTY RIGHTS PROTECTION RATES PUBLIC SECTOR PURCHASING POWER QUANTITATIVE RESTRICTIONS REAL EXCHANGE RATE REGIONAL AGREEMENT REGIONAL COOPERATION REGIONAL TRADE REGIONAL TRADE AGREEMENTS REGULATORY FRAMEWORK REGULATORY FRAMEWORKS REGULATORY REFORMS REVENUE LOSS ROAD TRANSPORT RULES OF ORIGIN SAFEGUARD MEASURES STRUCTURAL CHANGES TARIFF BARRIERS TARIFF BINDINGS TARIFF DISPERSION TARIFF LEVELS TARIFF RATE TARIFF RATES TARIFF REDUCTIONS TARIFF STRUCTURE TAX REVENUE TAXATION TECHNICAL ASSISTANCE TECHNICAL BARRIERS TECHNOLOGY TRANSFER TELECOMMUNICATIONS TOTAL FACTOR PRODUCTIVITY TOURISM TRADE TRADE AGREEMENT TRADE AND INVESTMENT POLICY TRADE BALANCE TRADE COMPETITIVENESS TRADE DATA TRADE DIVERSION TRADE FACILITATION TRADE FINANCE TRADE GROWTH TRADE IN GOODS TRADE INTEGRATION TRADE LIBERALIZATION TRADE NEGOTIATION TRADE PERFORMANCE TRADE POLICIES TRADE POLICY TRADE POLICY ANALYSIS TRADE PROMOTION TRADE REFORMS TRADE REGIME TRADE UNION TRADE UNIONS TRADE-RELATED INTELLECTUAL PROPERTY RIGHTS TRADING PARTNERS TRAFFIC TRANSACTION COSTS TRANSACTIONS COSTS TRANSIT TRANSIT ROUTES TRANSPORT COSTS TRANSPORT EQUIPMENT TRANSSHIPMENT UNEMPLOYMENT UNFAIR TRADE PRACTICES VALUATION VALUE ADDED WAGES WORLD MARKETS WORLD TRADE WORLD TRADE ORGANIZATION WTO World Bank Nepal : Trade and Competitiveness Study |
| geographic_facet |
South Asia Nepal |
| description |
This study analyzes Nepal's trade
policies and performance, identifies constraints to
increasing trade competitiveness, and recommends policy
changes and technical assistance to improve trade
performance. The study is timely, as Nepal's interim
Poverty Reduction Strategy Paper of 2003 assigns a key role
to trade and exports as drivers of broad-based economic
growth-one of the four main pillars of its strategy. Key
conclusions of this report suggest Nepal's trade
policies are generally sound, and the country is competitive
in a variety of products. However, these positive factors
are tempered by constraints that make Nepal's
productivity among the lowest in the region, create an
inhospitable business climate, and discourage foreign direct
investment-a key conduit for export-market access and
technology transfer. The most critical constraints are: 1)
delays in customs and transshipment to India's Kolkata
port; 2) high infrastructure costs, especially transport and
power; 3) a rigid, formal labor market; and, 4) weak policy
and institutions in the areas of taxation, investment and
trade promotion. But Nepal's prudent macroeconomic
stance throughout most of the 1990s, helped increase its
competitiveness. Low levels of domestic borrowing by the
public sector, the nominal anchor of an exchange-rate peg
with India, and a large jump in remittances by expatriate
Nepalese labor have enabled Nepal to maintain macroeconomic
stability. Notwithstanding, and despite liberalization and
growth of trade in the 1990s, the study shows that
competitiveness of Nepal's economy is low, as measured
by firm-level surveys in manufacturing, farm yields, and
aggregate productivity estimates. Labor productivity in
manufacturing and agriculture are among the lowest in the
region, while manufacturing unit labor costs are among the
highest, even though Nepal has comparative advantage in a
range of agriculture and manufacturing products. This study
shows how three key factors contribute to low price
competitiveness and productivity in Nepal's economy: a)
inadequate mechanisms and incentives for firms to acquire
new technology, b) weak infrastructure, and, c) an
unfavorable business climate. Conclusions suggest major
impacts of trade on the poor can come from switching to high
value cash crops from subsistence agriculture. A key
constraint to that is inadequate transportation
infrastructure. Growth of transport can lead to welfare
effects for the poor by enabling commercial crops and use
more fertilizers by farmers. Transportation also has direct
welcome effects through creation of employment and
income-generating opportunities. To this end, transition
from traditional subsistence agriculture toward
higher-margin, tradable crops (such as spices, tea, and
vegetables) can be promoted by increasing access to
year-round irrigation, inputs, technology, and, most
importantly, markets. |
| format |
Economic & Sector Work :: Foreign Trade, FDI, and Capital Flows Study |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Nepal : Trade and Competitiveness Study |
| title_short |
Nepal : Trade and Competitiveness Study |
| title_full |
Nepal : Trade and Competitiveness Study |
| title_fullStr |
Nepal : Trade and Competitiveness Study |
| title_full_unstemmed |
Nepal : Trade and Competitiveness Study |
| title_sort |
nepal : trade and competitiveness study |
| publisher |
Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2003/10/6338516/nepal-trade-competitiveness-study http://hdl.handle.net/10986/14417 |
| _version_ |
1764429061018353664 |
| spelling |
okr-10986-144172021-04-23T14:03:18Z Nepal : Trade and Competitiveness Study World Bank ACCESSION NEGOTIATIONS AGREEMENT ON TRADE AGRICULTURAL INCOMES AGRICULTURAL PRODUCTS AGRICULTURAL SUBSIDIES AGRICULTURE AIRLINES AVERAGE PRODUCTIVITY AVERAGE TARIFF AVERAGE TARIFF RATE BANKRUPTCY BANKRUPTCY LAW BORDER PRICES CAPACITY BUILDING CAPITAL MARKETS CHAMBERS OF COMMERCE COMMERCIAL DIPLOMACY COMMODITIES COMPARATIVE ADVANTAGE COMPETITION POLICY COMPETITION POLICY LEGISLATION COMPETITIVE ADVANTAGES COMPETITIVENESS CONCESSIONS CONSUMER GOODS CURRENCY CUSTOMS CUSTOMS CLEARANCE CUSTOMS DEPARTMENT CUSTOMS DUTIES CUSTOMS DUTY CUSTOMS POSTS CUSTOMS PROCEDURES DOMESTIC INDUSTRIES DOMESTIC MARKETS DOMESTIC TRADE DUMPING DUTY DRAWBACK DUTY-DRAWBACK SCHEME DUTY-FREE ACCESS ECONOMIC COMPETITIVENESS ECONOMIC COOPERATION ECONOMIC GROWTH ECONOMIC HISTORY ECONOMIC RATE OF RETURN ECONOMIC STRUCTURE ECONOMIC VOLATILITY EMPLOYMENT GROWTH EXCHANGE RATES EXPORT BASKET EXPORT COMPETITIVENESS EXPORT EARNINGS EXPORT GROWTH EXPORT INCENTIVES EXPORT PRICES EXPORT PRODUCTS EXPORT PROMOTION EXPORTERS EXPORTS EXTERNAL SHOCKS FACTOR MARKETS FINAL GOODS FINANCE FINANCIAL POSITION FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN INVESTMENT FOREIGN INVESTORS FORMAL TRADE FREE ACCESS FREIGHT GDP GLOBAL EXPORTS GLOBAL MARKET GLOBAL MARKETS GOVERNING INVESTMENT GROSS DOMESTIC PRODUCT GROWTH RATE GROWTH SCENARIO IMPORTS IMPROVING CUSTOMS INCOME INCOME EFFECT INCREASING COMPETITION INCREASING COMPETITIVENESS INCREASING TRADE INTELLECTUAL PROPERTY INTELLECTUAL PROPERTY RIGHTS INTERMEDIATE INPUTS INTERNATIONAL COMPETITION INTERNATIONAL ECONOMICS INTERNATIONAL TRADE INVENTORY INVESTMENT CLIMATE INVESTMENT INCENTIVES INVESTMENT POLICY ITC LABOR COSTS LABOR FORCE LABOR MARKET LABOR MARKET POLICIES LABOR MARKETS LABOR PRODUCTIVITY LANDLOCKED COUNTRIES LIVING STANDARDS LLC LOGISTICS COSTS LOGISTICS REQUIREMENTS LOW-INCOME COUNTRIES MACROECONOMIC MANAGEMENT MACROECONOMIC PERFORMANCE MACROECONOMIC STABILITY MANUFACTURING MARKET ACCESS MARKET ENTRY MARKET SHARE MINIMUM WAGE NATIONAL LOGISTICS NEIGHBORING COUNTRIES NET EXPORTS NON-TARIFF BARRIERS PER CAPITA INCOME POLICY REFORMS PREFERENTIAL TRADE PREFERENTIAL TRADE AGREEMENT PRIMARY GOODS PRIVATE INVESTMENT PRIVATE SECTOR PRODUCTIVITY PROPERTY RIGHTS PROTECTION RATES PUBLIC SECTOR PURCHASING POWER QUANTITATIVE RESTRICTIONS REAL EXCHANGE RATE REGIONAL AGREEMENT REGIONAL COOPERATION REGIONAL TRADE REGIONAL TRADE AGREEMENTS REGULATORY FRAMEWORK REGULATORY FRAMEWORKS REGULATORY REFORMS REVENUE LOSS ROAD TRANSPORT RULES OF ORIGIN SAFEGUARD MEASURES STRUCTURAL CHANGES TARIFF BARRIERS TARIFF BINDINGS TARIFF DISPERSION TARIFF LEVELS TARIFF RATE TARIFF RATES TARIFF REDUCTIONS TARIFF STRUCTURE TAX REVENUE TAXATION TECHNICAL ASSISTANCE TECHNICAL BARRIERS TECHNOLOGY TRANSFER TELECOMMUNICATIONS TOTAL FACTOR PRODUCTIVITY TOURISM TRADE TRADE AGREEMENT TRADE AND INVESTMENT POLICY TRADE BALANCE TRADE COMPETITIVENESS TRADE DATA TRADE DIVERSION TRADE FACILITATION TRADE FINANCE TRADE GROWTH TRADE IN GOODS TRADE INTEGRATION TRADE LIBERALIZATION TRADE NEGOTIATION TRADE PERFORMANCE TRADE POLICIES TRADE POLICY TRADE POLICY ANALYSIS TRADE PROMOTION TRADE REFORMS TRADE REGIME TRADE UNION TRADE UNIONS TRADE-RELATED INTELLECTUAL PROPERTY RIGHTS TRADING PARTNERS TRAFFIC TRANSACTION COSTS TRANSACTIONS COSTS TRANSIT TRANSIT ROUTES TRANSPORT COSTS TRANSPORT EQUIPMENT TRANSSHIPMENT UNEMPLOYMENT UNFAIR TRADE PRACTICES VALUATION VALUE ADDED WAGES WORLD MARKETS WORLD TRADE WORLD TRADE ORGANIZATION WTO This study analyzes Nepal's trade policies and performance, identifies constraints to increasing trade competitiveness, and recommends policy changes and technical assistance to improve trade performance. The study is timely, as Nepal's interim Poverty Reduction Strategy Paper of 2003 assigns a key role to trade and exports as drivers of broad-based economic growth-one of the four main pillars of its strategy. Key conclusions of this report suggest Nepal's trade policies are generally sound, and the country is competitive in a variety of products. However, these positive factors are tempered by constraints that make Nepal's productivity among the lowest in the region, create an inhospitable business climate, and discourage foreign direct investment-a key conduit for export-market access and technology transfer. The most critical constraints are: 1) delays in customs and transshipment to India's Kolkata port; 2) high infrastructure costs, especially transport and power; 3) a rigid, formal labor market; and, 4) weak policy and institutions in the areas of taxation, investment and trade promotion. But Nepal's prudent macroeconomic stance throughout most of the 1990s, helped increase its competitiveness. Low levels of domestic borrowing by the public sector, the nominal anchor of an exchange-rate peg with India, and a large jump in remittances by expatriate Nepalese labor have enabled Nepal to maintain macroeconomic stability. Notwithstanding, and despite liberalization and growth of trade in the 1990s, the study shows that competitiveness of Nepal's economy is low, as measured by firm-level surveys in manufacturing, farm yields, and aggregate productivity estimates. Labor productivity in manufacturing and agriculture are among the lowest in the region, while manufacturing unit labor costs are among the highest, even though Nepal has comparative advantage in a range of agriculture and manufacturing products. This study shows how three key factors contribute to low price competitiveness and productivity in Nepal's economy: a) inadequate mechanisms and incentives for firms to acquire new technology, b) weak infrastructure, and, c) an unfavorable business climate. Conclusions suggest major impacts of trade on the poor can come from switching to high value cash crops from subsistence agriculture. A key constraint to that is inadequate transportation infrastructure. Growth of transport can lead to welfare effects for the poor by enabling commercial crops and use more fertilizers by farmers. Transportation also has direct welcome effects through creation of employment and income-generating opportunities. To this end, transition from traditional subsistence agriculture toward higher-margin, tradable crops (such as spices, tea, and vegetables) can be promoted by increasing access to year-round irrigation, inputs, technology, and, most importantly, markets. 2013-07-09T16:14:28Z 2013-07-09T16:14:28Z 2003-10-22 http://documents.worldbank.org/curated/en/2003/10/6338516/nepal-trade-competitiveness-study http://hdl.handle.net/10986/14417 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Foreign Trade, FDI, and Capital Flows Study Economic & Sector Work South Asia Nepal |