Exports and Imports-Led Growth: Evidence from a Small Developing Economy

This paper examines equilibrium relationships and dynamic causality between economic growth, exports, imports in Nepal using time-series data 1965 2020. research the impact of exports on growth documents empirical evidence exports-led imports-led growth-led hypotheses both short long run. The test results show no favoring However, study finds supporting hypothesis term term. Overall, this favor notion that foreign trade supports findings may have important implications for policymakers Nepal. contributes to literature by investigating relationship imports, capital, gross domestic products a small economy such as Nepal, where make minimal an extensive contribution cointegration vector error correction model.