An Analysis of Economic Growth and Its Dynamics in Nepal

Abstract

This study has aimed to analyze the economic growth and its dynamics in the contribution of three major sector such as agricultural, industrial and service sector of Nepal. Mainly, the GDP growth rate is deepening on the various sectors but this study analyzed relationship between Gross Domestic Product (GDP) and three main sectors. The Multiple Regression Analysis and Pearson’s Correlation Coefficients statistical tool is used for secondary data available from the Central Bureau of Statistics of Nepal. This study covers time frame for the period of 2001/02 - 2015/16. And the study found that economic growth has positive relation with service sector and agriculture sector. But Industry sector has a negligible contribution to economic growth of Nepal. In this empirical analysis, economic growth parameters; GDP of Nepalese economy is taken in order to oversee into the relationship between sectoral growth rate and economic growth. The major economic contributors have high potentiality of inclusive, broad based and sustainable development of long term economic growth of Nepal. This study suggests all the stakeholders to bust up the national economy empowering the key economic parameters.