Analysis of Macroeconomic Indicators on Economic Growth: Nepal Perspective

Abstract

GDP per capita income growth is one of the most important determinants of economic growth, especially
in Nepal. Using time-series data of the last forty-four Years (1975to 2018) this study tries to investigate
the relationship between macro factors and their effect on GDP per capita growth in Nepal. The dependent
variable of the study is Gross Domestic Product per capita Growth ( annual%). To observe the Growth,
other factors like export-import, government expenditure on final goods and services Investment of
GDP are chosen. Correlation and multiple regression analysis were conducted to analyze the data.
Correlation analysis finds that GDP per capita growth has a positive relation with general government
final consumption, import, and investment. In regression analysis, it is observed that the independent
variables explained only 17.9% of the variability of GDP per capita growth. The results show the GDP
per capita growth has no significant changes in subjects to govern dormant factors. Some unconditional
decline on macro factors plagued for further growth. In developing countries like Nepal, GDP per capita
growth seems to have no important changes due to ups and downs of uncertain factors.