The Role Of Indian Fdi On Nepalese Economic Growth

3. Data and Methodology Present paper utilizes the annual data of GDP, Indian FDI, level of Investment and Export in real terms from the period 1989/90 to 2013/14. The concerned variables are transformed into logarithm and hereafter these are denoted by ã€â€"LnGDPã€â€"_t,ã€â€"LnFDIã€â€"_t ã€â€"LnIã€â€"_t and ã€â€"LnXã€â€"_t . Fully Modified Ordinary Least Squares (FMOLS) is the main econometric methodology used in this paper to examine the role and impact of Indian FDI on Nepalese economic growth. The FMOLS of economic growth of Nepal on Indian FDI augmented with level of investment and export has been used to find the magnitude of long run relationship between the variables under study. GDP is taken as the proxy for Nepalese economic growth. Some attention is necessary while employing FMOLS test. The variables under study must be cointegrated. So before applying the FMOLS we examine the cointegration by method of Johansen’s (1990) cointegration test. Prior to employing the Johansen’s Cointegration test we perform unit root test using ADF method. FMOLS method was designed by Phillips and Hansen (1990) to estimate the cointegrating regressions. This method employs a semi-parametric correction to eliminate the problems created by long run correlation between cointegrating equation and stochastic regressors innovations. This method is used to modify the least squares to account for serial correlation effects and for the endogeneity in the regressions that result from the existence of cointegratingShow MoreRelatedThe Role Of Indian Fdi On Nepalese Economic Growth1491 Words   |  6 Pagestesting stationarity, co-integration and causal relationships among the variables for time series data-set. Present study employs secondary data on the concerned variables such as Indian FDI flows, structure of Indian FDI, Nepalese GDP, investment and export from FY 1988/89 to 2013/14. The necessary data are taken from Economic Survey 2013/14 and Department of Industry, Nepal. 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Here, the managers are reluctant to make negative judgments on individual‟s performance as it could be de-motivating leading to appraise accusations of lack The Role Of Indian Fdi On Nepalese Economic Growth tools and approach as the main analytical methods. It includes OLS regression after testing stationarity, co-integration and causal relationships among the variables for time series data-set. Present study employs secondary data on the concerned variables such as Indian FDI flows, structure of Indian FDI, Nepalese GDP, investment and export from FY 1988/89 to 2013/14. The necessary data are taken from Economic Survey 2013/14 and Department of Industry, Nepal. The data are transformed into real terms taking 2005/06 as the base year and data sets in real terms are converted into logarithmic forms hereafter these are denoted by ã€â€"LnGDPã€â€"_t,ã€â€"LnFDIã€â€"_t ã€â€"LnIã€â€"_t and ã€â€"LnXã€â€"_t . Fully Modified Ordinary Least Squares (FMOLS) is the main econometric methodology used in this paper to examine the role and impact of Indian FDI on Nepalese economic growth. The FMOLS of economic growth of Nepal on Indian FDI augmented with level of investment and export has been used to find the magnitude of long run relationship between the variables under study. GDP is taken as the proxy for Nepalese economic growth. Some attention is necessary while employing FMOLS test. The variables under study must be cointegrated. So before applying the FMOLS we examine the cointegration by method of Johansen’s (1990) cointegration test. Prior to employing the Johansen’s Cointegration test we perform unit root test using ADF method. FMOLS method was designed by Phillips and Hansen (1990) to estimate the cointegratingShow MoreRelatedThe Role Of Indian Fdi On Nepalese Economic Growth1252 Words   |  6 Pagesthe annual data of GDP, Indian FDI, level of Investment and Export in real terms from the period 1989/90 to 2013/14. The concerned variables are transformed into logarithm and hereafter these are denoted by ã€â€"LnGDPã€â€"_t,ã€â€"LnFDIã€â€"_t ã€â€"LnIã€â€"_t and ã€â€"LnXã€â€"_t . Fully Modified Ordinary Least Squares (FMOLS) is the main econometric methodology used in this paper to examine the role and impact of Indian FDI on Nepalese economic growth. 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Foreign Policy Choices of Nepal If we focus on the foreign policy choices of Nepal we find geographic interference in her policy making. If geographical realities are domestic compulsions, Sino-Indian relation is the most significant external outcome in the foreign policy of Nepal. The Tibet issue has a weird psychological subtext in Nepal. (Pandey, D. R. 1999) Nepal follows the policy of non-alignment and the five principles of Panchaseel. NepalRead MoreArticle: Performance Appraisal and Performance Management35812 Words   |  144 Pagesmotivating, training and development (Rao and Pareek 2006). This conflicts with evaluation of past performance and distribution of rewards based on past performance. As to evaluate appraisers‟ performance the appraiser challenges to play opposite roles as both monitors and judges of performance and as an understanding counsellor (Randell 1994). 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