Purpose: The purpose of the present study is to find the impact of tax revenue, non-tax revenue, and foreign aid to increase the size of the budget in Nepal. Methods: This study is based on descriptive, analytical, and exploratory research designs. The Johnsen Co-integration Test, VECM, Wald Test, and Granger Causality Test are used to find long-run relation, impact, short-run causality, and granger cause between the pairs of variables. Results: The tax revenue, non-tax revenue, foreign aid, and budget are co-integrated, or they have a long-run association ship. The result of VECM shows that tax revenue, non-tax revenue, foreign aid is nicely fitted, and they are jointly significant to explain the size of the budget in Nepal. Short-run causality was found between the size of budget and tax revenue and size of budget and foreign aid, but there was an absence of short-run causality between budget and non-tax revenue in Nepal. The granger cause was not found between the pair of variables. Implications: It seems to increase the tax revenue and decrease the dependency on foreign aid. Limitations: This study was based on the secondary data of 40 years from the fiscal year 1979/80 to 2018/19. Only three variables, tax revenue, non-tax revenue, and foreign aid, are considered the effecting factor of the budget size. Hence, further study is necessary by employing other tools and variables. Originality: The author was not affected by the study and findings of others.
This study aims to show the tax-to-GDP ratio condition and explore the relation of tax revenue with Nepal's GDP. It is based on the secondary data that is collected from various published sources. Descriptive and exploratory research designs are used to explore the relationship between tax revenue and GDP. Some statistical and econometric tools like mean, depression, correlation, Johnsen Co-integration Test, Vector Error Correction Model (VECM), serial correlation, heteroskedasticity test, and normality test are used. There is a high degree of the positive relationship between tax revenue and GDP of Nepal. The tax revenue and GDP are co-integrated, or they have a long-run association ship. The tax-to-GDP ratio of Nepal lies in the high rank among the various developing countries. So, tax to GDP ratio alone cannot ensure its economic growth. It is advised to the concerned authorities to increase the income to increase the tax revenue; otherwise, it increases the general public's dissatisfaction with the government.
The impact of gender participation on the maturity of crossed-due loans is observed in this study. Furthermore, the associations between maturity of crossed-due loans, their number, and loan issued on physical collateral and collective bail are also monitored using the unbalanced panel data of thirty microfinance companies. The study investigates the short- and long-term link between response and predictor variables. It is founded on an exploratory and descriptive research design. The Hausman test, fixed effect or LSDV model, Pedroni and Kao co-integration test are used to observe the relation and impact. The maturity crossed due loan number, total loan amount, loan issued against physical collateral, and loan allocated on collective bail are jointly significant to determine the maturity of crossed due loan amount of microfinance companies of Nepal. It is found that women are more conscientious in repaying loans on time compared to male borrowers. Per rupee 0.382 rupees, a maturity crossed due loan is found in microfinance companies where only women can borrow, but per rupee 0.404 rupees, a time crossed due loan is found where men and women can borrow. Policymakers of banks are not necessarily hesitant to provide loans to female borrowers.
This study examines the relation and impact of gross capital formation and gross national saving on Nepal's Gross Domestic Product (GDP). It is based on the secondary data taken from various economics survey of Nepal and other published sources covering 33 data points from the fiscal year 1987/88 to 2019/20. Descriptive and empirical research designs examine the relation between GDP, gross capital formation, and gross national saving. The EViews 10 data processing software is used. Some econometrics tools like mean, dispersion, ARDL bound testing, error correction model, heteroskedasticity, serial correlation test, normality test, CUSUM test, and CUSUM square test are used. There is a long-run positive relationship between GDP and gross capital formation and gross national saving. The gross capital formation and gross national saving are individually and jointly significant to explain GDP in the long run, but there is a negative impact on regressors' GDP. Capital formation and saving positively impact GDP. Still, the effectiveness is not found satisfactory because a one percent increase in capital formation only increases GDP by 0.267 per cent. So, the saving amount must be utilized in the productive sector. The author of the research is not affected by the other researchers' findings, tools, and methods.
The role of interest income and fee, commission, and discount income on the net profit of Nepalese commercial banks is investigated in this study. It also tries to find short- and long-term relationships between net profit and interest income, as well as income from fees, commissions, and discounts. The panel data of seven commercial banks are studied to look for correlations between dependent and independent variables from fiscal years 2010/11 to 2019/20. Panel unit root testing, Hausman specification test, fixed effect model, Pedroni (Engle-Granger based) co-integration test, Kao residual co-integration test, and Panel –fully modified least squares methods are used. The fixed-effect model can produce efficient outcomes, according to the Hausman test. The fixed-effect model reveals that interest income is significant in explaining commercial banks' net profit. The long-run connections between net profit and its two determinants, such as interest income and income from fee, commission, and discount income, have been discovered using both Pedroni and Kao's co-integration tests. Similarly, the fully modified least square (FMOLS) panel ensures long-term relationships between variables. Both independent factors have a substantial impact on the net profit of Nepalese commercial banks. Commercial banks' net profit is heavily reliant on the interest income from borrowers. The net profit of commercial banks in Nepal increases by 0.466 units for every unit rise in interest income. As a result, authorities must look for alternative ways to boost net profit since issues might arise if the central bank narrows the difference between the depositary and lending interest rates.
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