Description
This paper has sought to examine the factors that have contributed to the economic growth of Nepal and Bhutan. After a brief discussion of the economy and growth strategy of each country, standard growth models for Nepal and Bhutan are developed and estimated. The results indicate that domestic capital has been a significant source of economic growth in Nepal whereas foreign aid has not had any appreciable effect on growth. The reverse is true for Bhutan.
Nepal and Bhutan: development strategies and growth
This paper has sought to examine the factors that have contributed to the economic growth of Nepal and Bhutan. After a brief discussion of the economy and growth strategy of each country, standard growth models for Nepal and Bhutan are developed and estimated. The results indicate that domestic capital has been a significant source of economic growth in Nepal whereas foreign aid has not had any appreciable effect on growth. The reverse is true for Bhutan.