| Title : | Impact of monetary policy and fiscal policy on economic growth : evidance from Nepal | | Material Type: | printed text | | Authors: | Bal Kumar Dhimal, Author | | Publication Date: | 2017 | | Pagination: | 72p. | | Size: | GRP/Thesis | | Accompanying material: | 6/B | | Languages : | English | | Abstract: | The central bank is responsible for the conduct of monetary policy. Central banks employs certain monetary policy instruments like bank rate, open market operation, changing reserve requirements and other selective credit control instruments. The banking system is an integral part of an economy's financial sector, perhaps contributes the most significant amounts of money supply in a country (Zaman et.all.,2014).
This study examines the impact of monetary policy and fiscal policy on economic growth of Nepal. Real gross domestic product growth rate (GDG) and GDP per capita growth (PCI) are the selected dependent variables while tax revenue, government debt, government expenditure, money supply, inflation, and open market operations are the independent variables. The main sources of data include Quarterly Economic Bulletin published by Nepal Rastra Bank, Economic Survey published by Ministry of Finance and World Development Indicators of World Bank. The study is based on the secondary data which are collected for the period of 42 years from 1974 to 2015. The time series data are used to analyze the relationship of monetary policy and fiscal policy on economic growth in Nepal.
The study shows that there is positive relationship between government expenditure and real GDP and per capita growth. This indicates that higher the government expenditure, higher would be the economic growth. The results also show that there is a positive relationship of tax revenue with real GDP and per capita growth, indicating increase in tax revenue leads to increase in economic growth. The results show that money supply and open market operations are positively related to the real GDP and per capita growth. This indicates that increase in money supply leads to increase in economic growth. Likewise, higher the open market operation, higher would be the economic growth. However, the results show that inflation has negative relationship with real GDP and per capita growth. This indicates that higher the inflation, lower would be the economic growth. The regression results show that beta coefficients are positive for tax revenue, government debt, government expenditure, money supply, inflation, and open market operations. However, the coefficients are significant only for government debt, open market operations and money supply.
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Impact of monetary policy and fiscal policy on economic growth : evidance from Nepal [printed text] / Bal Kumar Dhimal, Author . - 2017 . - 72p. ; GRP/Thesis + 6/B. Languages : English | Abstract: | The central bank is responsible for the conduct of monetary policy. Central banks employs certain monetary policy instruments like bank rate, open market operation, changing reserve requirements and other selective credit control instruments. The banking system is an integral part of an economy's financial sector, perhaps contributes the most significant amounts of money supply in a country (Zaman et.all.,2014).
This study examines the impact of monetary policy and fiscal policy on economic growth of Nepal. Real gross domestic product growth rate (GDG) and GDP per capita growth (PCI) are the selected dependent variables while tax revenue, government debt, government expenditure, money supply, inflation, and open market operations are the independent variables. The main sources of data include Quarterly Economic Bulletin published by Nepal Rastra Bank, Economic Survey published by Ministry of Finance and World Development Indicators of World Bank. The study is based on the secondary data which are collected for the period of 42 years from 1974 to 2015. The time series data are used to analyze the relationship of monetary policy and fiscal policy on economic growth in Nepal.
The study shows that there is positive relationship between government expenditure and real GDP and per capita growth. This indicates that higher the government expenditure, higher would be the economic growth. The results also show that there is a positive relationship of tax revenue with real GDP and per capita growth, indicating increase in tax revenue leads to increase in economic growth. The results show that money supply and open market operations are positively related to the real GDP and per capita growth. This indicates that increase in money supply leads to increase in economic growth. Likewise, higher the open market operation, higher would be the economic growth. However, the results show that inflation has negative relationship with real GDP and per capita growth. This indicates that higher the inflation, lower would be the economic growth. The regression results show that beta coefficients are positive for tax revenue, government debt, government expenditure, money supply, inflation, and open market operations. However, the coefficients are significant only for government debt, open market operations and money supply.
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