Impact of COVID-19 on FDIs, Remittances and Foreign Aids: A Case Study of Nepal

Abstract

The global economy has been severely paralysed, owing to the unprecedented crisis triggered by the COVID-19 pandemic, and different studies have indicated that the crisis is relatively more maleficent to the lower-income and middle-income economies. Methodologically, this study relied on the review and analysis of the grey literature, media reporting and data published by the Asian Development Bank, United Nations Conference on Trade and Development (UNCTAD), United Nations (UN), World Bank, International Monetary Fund (IMF) among others. The article begins by describing the impact of the pandemic on low-income and middle-income countries, and it discusses how they have responded to the crisis. While discussions have surfaced regarding whether COVID-19 will reverse the process of globalization, what will be its impact on the low-income country like Nepal? The study also highlights that with foreign direct investments speculated to shrink and foreign assistance and remittance taking a hit, how is Nepal struggling to keep its economy afloat? Analysing the new budget that the government unveiled in 2020, this study concludes with a note that instead of effectively implementing the plans and policies directed by the budget, Nepal is unnecessarily engaged in political mess and is needlessly being dragged into the geopolitical complications.

Analysis of Impulse Buying Behaviour of Consumer During COVID-19: An Empirical Study

“…Involvement is also seen as a key component in determining whether to buy fashion goods, and it has a significant impact on impulse purchases. Similarly, Kim et al (2002) and Bhattarai and Subedi (2021) demonstrated how engagement is a crucial element in fashion impulse purchases that influences either favourably or negatively depending on connected characteristics like impulse propensity, fun and enjoyment. According to Dhurup (2014), fashion participation is intimately linked to purchasing emotions and aspirations, with emotions serving as major indicators of impulsive purchases.…”

Dalit’s livelihoods in Nepal: income sources and determinants

“…A high reliance on remittances may produce a high risk to the country’s economy in any kind of international labour market crisis. Empirical studies demonstrating a significant drop in the remittance influx and reduction in the share of remittances in the gross national domestic product in earlier crises (for example, global financial crisis, Maoist insurgency in Nepal) are available (Sapkota, 2013 ), and for the recent Coronavirus (COVID-19) crisis, studies are emerging (Adhikari et al, 2022 ; Bhattarai & Subedi, 2021 ).…”

Remittances and Economic Growth: Empirical Analysis from a Panel of Selected Asian Nations

“…Remittances to GDP ratio of Nepal was only 2% in 2000, and it has risen sharply in the past 17 years. Remittances have a positive impact on the government revenue, helping to raise liquidity in the financial institutions of Nepal (Bhattarai & Subedi, 2021). Similarly, in the case of Kyrgyz Republic, remittances amounted to 31% of its GDP in 2016.…”