Assessing Determinants of Nepali International Trade: A reference to the World Trade Organization

Abstract

Nepal, a land-locked by two giant economies - China and India, is the first "Least Developed Country" (LDC) to become a member of the World Trade Organization (WTO) through the negotiation process. Moreover, Nepal aimed to diversify its trade and to make the trade regime more liberal to integrate into a global trading system being a member of the WTO. Therefore, the paper aimed to evaluate the impacts of determinants of Nepali international trade. The secondary data were accessed from the Nepal Rastra Bank and the World Bank. More importantly, to execute a multiple regression model, we used the World Bank data from 1965 to 2015. The result suggested that Agricultural value addition, industrial value addition and service value addition showed a different impact on Nepali international trade. The determinants of Nepali international trade can be internalized in the trade policy of Nepal to achieve its initial objectives.