Navigating the nexus: Unraveling the impact of economic, social, and financial globalization on the economic growth of Nepal

https://doi.org/10.51867/scimundi.5.2.37

Auteurs

Mots-clés :

Asymmetric, Diversification, Expansion, Migration, Tariff

Résumé

This study aims to examine the impact of economic, social, and financial globalization on Nepal's economic growth. It draws on the concepts of the neoclassical, Heckscher-Ohlin, and dependency theories, which use a methodological approach to the relationship between economic expansion and globalization. This study is based on secondary data collected from various World Bank reports. It includes 53 years of yearly data from Nepal, spanning from 1970 to 2022. It follows the analytical research design, positivist research philosophy, and deductive reasoning. The non-linear autoregressive distributive lag (NARDL) model is used to explore the impact and cointegration between response and predictor variables. There is long-run asymmetric cointegration between social, economic, and financial globalization and economic growth in Nepal. The R-squared value of 0.867 (86.7%) from the short-run error correction model indicates that the variation in economic growth is explained by social, economic, and financial globalization. Similarly, the NARDL's R-squared value of 0.659 (65.9%) reveals that social, economic, and financial globalization explains the variation in growth. Globalization has a powerful but asymmetric impact on economic growth. Policymakers could strategically pursue policies that maximize growth from increased global integration while simultaneously developing robust domestic safeguards to insulate the economy from the distinct shocks of global financial instability.

Téléchargements

Les données relatives au téléchargement ne sont pas encore disponibles.
Dimensions

Athalage, D., Wijesuriya, P., Sandanayaka, I., Rathnayake, D., & Jayathilaka, R. (2025). The interplay between globalization and economic growth: A multiregional analysis. Discover Sustainability, 6(1), 525. https://doi.org/10.1007/s43621-025-01403-6 DOI: https://doi.org/10.1007/s43621-025-01403-6

Bekaert, G., Harvey, C. R., & Lundblad, C. (2005). Does financial liberalization spur growth? Journal of Financial Economics, 77(1), 3-55. https://doi.org/10.1016/j.jfineco.2004.05.007 DOI: https://doi.org/10.1016/j.jfineco.2004.05.007

Bergh, A., & Nilsson, T. (2014). Is globalization reducing absolute poverty? World Development, 62, 42-61. https://doi.org/10.1016/j.worlddev.2014.04.007 DOI: https://doi.org/10.1016/j.worlddev.2014.04.007

Bhanumurthy, N. R., & Kumawat, L. (2020). Financial globalization and economic growth in South Asia. South Asia Economic Journal, 21(1), 31-57. https://doi.org/10.1177/1391561420909007 DOI: https://doi.org/10.1177/1391561420909007

Chang, C., & Lee, C. (2010). Globalization and economic growth: A political economy analysis for OECD countries. Global Economic Review, 39(2), 151-173. https://doi.org/10.1080/1226508x.2010.483835 DOI: https://doi.org/10.1080/1226508X.2010.483835

Donaldson, J. (1934). Ohlin's theory of interregional and international trade. Weltwirtschaftliches Archiv, 39, 91-97. http://www.jstor.org/stable/40429348

Dreher, A. (2006). Does globalization affect growth? Evidence from a new index of globalization. Applied Economics, 38(10), 1091-1110. https://doi.org/10.1080/00036840500392078 DOI: https://doi.org/10.1080/00036840500392078

Ehigiamusoe, K. U. (2023). A disaggregated approach to analyzing the effects of globalization and energy consumption on economic growth: New insights from low‐income countries. International Journal of Finance & Economics, 28(4), 3976-3996. https://doi.org/10.1002/ijfe.2631 DOI: https://doi.org/10.1002/ijfe.2631

https://doi.org/10.1002/ijfe.2631

Fonchamnyo, D. C., Benard, M. W., & Chiati, E. A. (2017). The implication of financial globalization on the economic growth of Cameroon. Journal of Economics and Sustainable Development, 8(15), 11-17. http://www.iiste.org/

Frank, A. G. (1966). The development of underdevelopment. Monthly Review, 18(4), 17. https://doi.org/10.14452/mr-018-04-1966-08_3 DOI: https://doi.org/10.14452/MR-018-04-1966-08_3

https://doi.org/10.14452/MR-018-04-1966-08_3

Gurung, B., Junjun, H., Shrestha, R. G., & Aloqab, A. (2023). Globalization and economic growth in Nepal: A VECM approach. CARC Research in Social Sciences, 2(4), 221-226. https://doi.org/10.58329/criss.v2i4.76 DOI: https://doi.org/10.58329/criss.v2i4.76

Heimberger, P. (2021). Does economic globalization promote economic growth? A meta‐analysis. World Economy, 45(6), 1690-1712. https://doi.org/10.1111/twec.13235 DOI: https://doi.org/10.1111/twec.13235

IMF. (2008). Globalization: A brief overview. IMF Staff Position Note. https://www.imf.org/external/np/exr/ib/2008/053008.htm

Kose, M. A., Prasad, E. S., Rogoff, K., & Wei, S. J. (2009). Financial globalization: A reappraisal. IMF Staff Papers, 56(1), 8-62. https://doi.org/10.1057/imfsp.2008.36 DOI: https://doi.org/10.1057/imfsp.2008.36

Majidi, A. F. (2017). Globalization and economic growth: The case study of developing countries. Asian Economic and Financial Review, 7(6), 589-599. https://doi.org/10.18488/journal.aefr.2017.76.589.599 DOI: https://doi.org/10.18488/journal.aefr.2017.76.589.599

McCulloch, R. (2006). Protection and real wages: The Stolper-Samuelson theorem. In Oxford University Press eBooks (pp. 224-234). https://doi.org/10.1093/acprof:oso/9780199298839.003.0016 DOI: https://doi.org/10.1093/acprof:oso/9780199298839.003.0016

Nguea, S. M., Noula, A. G., & Noumba, I. (2024). Financial globalization and democracy: Implications for economic growth in African countries. Journal of the Knowledge Economy, 15, 3355-3379. https://doi.org/10.1007/s13132-023-01311-y DOI: https://doi.org/10.1007/s13132-023-01311-y

Nguyen, V. C. T., & Le, H. Q. (2021). Globalization and economic growth: Empirical evidence from Vietnam. Journal of Organizational Behavior Research, 6(1), 173-188. https://doi.org/10.51847/1PIOmlpSNh DOI: https://doi.org/10.51847/1PIOmlpSNh

Nissanke, M., & Stein, H. (2003). Financial globalization and economic development: Toward an institutional foundation. Eastern Economic Journal, 29(2), 287-307. https://shorturl.at/X2HMP

Obstfeld, M., & Taylor, A. M. (2004). Global capital markets: Integration, crisis, and growth. Cambridge University Press. https://shorturl.at/xJ3zK DOI: https://doi.org/10.1017/CBO9780511616525

https://doi.org/10.1017/CBO9780511616525

Okocha, K. (2024). The impact of globalization on third-world countries. International Journal of Research and Innovation in Social Science (IJRISS), 8(9), 3259-3265. https://doi.org/10.47772/IJRISS.2024.8090271 DOI: https://doi.org/10.47772/IJRISS.2024.8090271

Paudel, R. K. (2020). Empirical evidence of the Solow growth model in the Nepali economy. Deleted Journal, 23(1), 125-136. https://doi.org/10.3126/md.v23i1.35567 DOI: https://doi.org/10.3126/md.v23i1.35567

Paudel, S. (2014). Globalization and economic growth in Nepal: An ARDL approach to co-integration. International Affairs and Global Strategy, 27, 1-7. https://www.iiste.org/Journals/index.php/IAGS/article/view/18215

Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289-326. http://www.jstor.org/stable/2678547 DOI: https://doi.org/10.1002/jae.616

https://doi.org/10.1002/jae.616

Prasad, E., Rogoff, K., Wei, S. J., & Kose, M. A. (2003). Effects of financial globalization on developing countries: Some empirical evidence. International Monetary Fund. https://www.imf.org/external/np/res/docs/2003/031703.pdf

Samimi, A. J., & Jenatabadi, H. S. (2014). Globalization and economic growth: Empirical evidence on the role of complementarities. PLOS ONE, 9(4), e87824. https://doi.org/10.1371/journal.pone.0087824 DOI: https://doi.org/10.1371/journal.pone.0087824

Shin, Y., Yu, B., & Greenwood-Nimmo, M. (2014). Modelling asymmetric cointegration and dynamic multipliers in a nonlinear ARDL framework. In Festschrift in honor of Peter Schmidt: Econometric methods and applications (pp. 281-314). Springer. https://doi.org/10.1007/978-1-4899-8008-3_9 DOI: https://doi.org/10.1007/978-1-4899-8008-3_9

Solow, R. M. (1956). A contribution to the theory of economic growth. The Quarterly Journal of Economics, 70(1), 65-94. https://doi.org/10.2307/1884513 DOI: https://doi.org/10.2307/1884513

Soti, N., Kumar, A., Gupta, S., Ahuja, S., & Deepa, N. (2025). Towards a sustainable future: The interplay of trade globalization and regulatory quality on environmental outcomes in India. Sustainable Futures, 9, 100578. https://doi.org/10.1016/j.sftr.2025.100578 DOI: https://doi.org/10.1016/j.sftr.2025.100578

Stiglitz, J. E. (2002). Globalization and its discontents. Economic Notes, 32(1), 123-142. https://doi.org/10.1046/j.0391-5026.2003.00107.x DOI: https://doi.org/10.1046/j.0391-5026.2003.00107.x

Tayar, V. M. (2022). Spain and the internationalization of the economy. Cuadernos Iberoamericanos, 9(3), 94-107. https://doi.org/10.46272/2409-3416-2021-9-3-94-107 DOI: https://doi.org/10.46272/2409-3416-2021-9-3-94-107

Unerbayeva, R., Alibekova, G., Grabara, J., & Zhainazar, A. (2024). Improving the quality of life for sustainable development in the context of globalization and modernization of Kazakhstan's economy. The Journal of Economic Research & Business Administration, 150(4), 147-163. https://doi.org/10.26577/be.2024.150.i4.a11 DOI: https://doi.org/10.26577/be.2024.150.i4.a11

UNESCO. (2017). Rethinking education: Towards a global common good? UNESCO Publishing. https://shorturl.at/gWhRG

Wallerstein, I. (2011). The modern world-system I: Capitalist agriculture and the origins of the European world-economy in the sixteenth century (1st ed.). University of California Press. http://www.jstor.org/stable/10.1525/j.ctt1pnrj9 DOI: https://doi.org/10.1525/9780520948570

https://doi.org/10.1525/9780520948570

Publiée

2025-12-05

Comment citer

Budhathoki, P. B., Dahal, A. K., & Ghimire, S. R. (2025). Navigating the nexus: Unraveling the impact of economic, social, and financial globalization on the economic growth of Nepal. SCIENCE MUNDI, 5(2), 392–406. https://doi.org/10.51867/scimundi.5.2.37

Numéro

Vol. 5 No 2 (2025): Jul-Dec 2025

Rubrique

Articles
Copyright & Licensing

(c) Tous droits réservés Prem Bahadur Budhathoki, Arjun Kumar Dahal, Shiva Raj Ghimire 2025

Creative Commons License

Ce travail est disponible sous licence Creative Commons Attribution - Pas d’Utilisation Commerciale 4.0 International.

Crossref
Scopus
Google Scholar
Europe PMC