Nepal's Trade Imbalance: Untapped Potential with China Revealed
The article explores how Nepal trades with other countries using a gravity model. It studied trade patterns over 29 years with Nepal's 94 trading partners. The researchers found that larger economies tend to trade more with Nepal, while distance plays a role in reducing trade. Trade was not significantly affected by economic changes in Nepal after liberalization. The study showed that Nepal trades more with India than with China, and it recommends diversifying trade partners for increased benefits, especially through trade agreements with China. The researchers also observed that Nepal's trade was not significantly impacted by political decisions like sanctions.