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Exchange rate policy and export performance in a landlocked developing country: the case of Nepal

Paudel, Ramesh C.; Burke, Paul J.

Description

This paper examines the implications of Nepal’s exchange rate policy for its export performance over the period 1980–2010. We first document Nepal’s long-standing currency peg against the Indian rupee and that Nepal’s real exchange rate appreciated substantially from the late 1990s. We then employ a gravity modeling approach to confirm that this real exchange rate appreciation has adversely affected Nepal’s exports, especially to third-country markets. Nepal’s exchange rate-related export...[Show more]

CollectionsANU Research Publications
Date published: 2015-04-13
Type: Journal article
URI: http://hdl.handle.net/1885/14018
Source: Journal of Asian Economics
DOI: 10.1016/j.asieco.2015.04.003

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