Impact of Economic and Social Infrastructures on the Long-run Economic Growth in Nepal

Prem Bahadur Budhathoki, Ganesh Bhattarai and Arjun Kumar Dahal
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Prem Bahadur Budhathoki: Tribhuvan University, Kathmandu, (Nepal)
Ganesh Bhattarai: Tribhuvan University, Kathmandu, (Nepal)
Arjun Kumar Dahal: Tribhuvan University, Jhapa, (Nepal)

IJEP, 2025, vol. 8, issue 02, Pages : 180-194

Abstract: The long-term effects of Nepal’s social and economic infrastructure on economic growth are examined in this study. It is based on secondary data gathered from numerous economic surveys, documents from the Nepalese government’s budget, and publications from the country’s central bank, Nepal Rastra Bank. The descriptive and exploratory research designs are applied. Descriptive statistics, correlation analysis, ARDL bound testing, Breusch-Godfrey serial correlation test, heteroscedasticity, and Jarque-Bera normality test are some of the statistical and econometric methods employed. Investment in social infrastructure and economic growth are significantly positively correlated. There is a strong correlation between social infrastructure and economic infrastructure in Nepal’s economic development. There is long-run co-integration between economic growth and social and economic infrastructures. One percent increase in social infrastructure investment results in a 1.521 percent increase in GDP but a one percent increase in economic infrastructure results 0.456 percent increase in GDP. Investment in social infrastructure has a multiplier effect on the GDP growth of Nepal. Therefore, investment in social infrastructure is more profitable for the nation.

Keywords: Co-integration; investment; consistency; moderate; significance; Nepal (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:bjm:ijep00:v:8:y:2025:i:02:id:382

DOI: 10.54241/2065-008-002-010

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