Trade Policy Reforms for the Twenty First Century : The Case of Nepal

Narain, Ashish ; Varela, Gonzalo

World Bank, Washington, DC

关键词: TRADE;    BUSINESS;    AGREEMENT;    GOVERNANCE;    IMPACT;   

RP-ID  :  122063

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This report examines how Nepal couldmove away from a remittance-driven growth model by reformingits trade policies to increase competitiveness. It looks atthe extent to which Nepal has been tapping into its tradepotentials, the underlying obstacles that it faces, and thetype of reforms that could turn trade and investment into avehicle for growth. Five key messages emerge. First,Nepalese exporters remain small and struggle with increasetheir shipments once they enter a new market, rather thanwith the fixed cost associated with entering. This is due tosevere supply-side constraints that affect their trade andproduction costs. Second, Nepalese firms underutilizeexisting trade agreements and granted trade preferences.Third, diversification opportunities lie in fast-growingeconomies in East Asia and the Pacific. Efforts regardingconnectivity, trade facilitation and export intelligencecould help firms get to those markets. Fourth, to reduce theanti-export bias of its trade policy, Nepal needs tosimplify its tariff code, reduce tariffs on intermediates,and embrace deeper integration, starting with more opennessto services and investment. Fifth, trade reforms in Nepalare welfare enhancing and, on average, pro-poor.