Economic Journal of Development Issues <p>A publication of the Department of Economics, Patan Multiple Campus, Tribhuvan University, Kathmandu, Nepal.</p> en-US <p>© Department of Economics, Patan Multiple Campus, Tribhuvan University</p> (Dr. Madhav Prasad Dahal) (Sioux Cumming) Thu, 01 Aug 2019 14:22:11 +0000 OJS 60 Factors Determining Performance of Institutional Schools in Chitwan, Nepal <p>Improvement of quality of education is a challenging task; however, it is not impossible. Measuring the performance of schools is not straightforward. In general, number of students passed in the examination in terms of percentage is considered as performance of the schools. Knowing the factors to determine the performance of schools provides some ideas on how to improve the quality of education. The paper, therefore, seeks to show factors that affect performance of the institutional school. The data were collected using structured questionnaires and interview from 90 respondents of Chitwan district, Nepal. The performance of the schools is measured in terms of per cent of students passed in school leaving certificate examination. Improvement in library and laboratory facilities, parents-teacher interactions, drinking water and toilet facilities compared to previous level, and academic quality perceived by teachers determine the performance of the school. Some levels of improvement in playground and sports materials have power to improve the performance of the schools.</p> Dipak Bahadur Adhikari, Gita Nath Aryal ##submission.copyrightStatement## Wed, 31 Jul 2019 00:00:00 +0000 Money Demand Function for Nepal: An Empirical View from Expenditure Component <p>This paper examines the long run and short-run dynamics relationship between broad money, consumption expenditure, capital stock and interest rate in Nepal over the period of 1975-2017. This paper employs ARDL bound testing approach for co-integration between the broad money demand and its determinants. Result reveals the evidence of cointegration among the variables. The empirical results show that the demand for money is affected by the interest rate and final consumption expenditure both in the long run and short-run. However, the gross fixed capital formation has no impact on demand for money in the long-run and short-run as well. On contrast, interest rate is positively associated with Broad money demand, which is not consistent with theoretically. Positive association of money demand with interest rate shows that demand for money function is instability in Nepal. Thus, this study suggests that policy maker to correct price fluctuation through the control of various expenditure components, particularly, real final consumption expenditure might be an important strategy in the long run. However, the gross fixed capital formation has no impact on demand for money in the long-run.</p> Pujan Adhikari ##submission.copyrightStatement## Thu, 01 Aug 2019 00:00:00 +0000 Potential Inter-Fuel Substitution between Hydroelectricity and Fossil Fuels in Nepal <p>In spite of huge hydro-electricity potential, Nepal still relies on fossil fuel to meet its energy demand. However, as the pace of hydroelectricity generation gets momentum in recent years, there are concerns about the excess supply of hydroelectricity in the domestic market in the near future. In this context, this paper examines the potential substitution of conventional fuels by the hydroelectricity in Nepal. Using translog production function, this paper calculates the elasticity of substitution between hydroelectricity, coal, gas, petrol, diesel, and kerosene for the period of 1980 to 2016. Our findings suggest that all the fuels except kerosene are positively associated with economic growth during the study period, and the output elasticity of hydroelectricity is found be largest among these sources of energy. The findings also suggest that hydroelectricity has the potential for substitute other conventional fuels if the share of hydroelectricity is increased in the energy consumption composition. While there is not a huge variation in the elasticity of substitution between hydroelectricity and other fuels, the hydroelectricity has relatively higher potential to substitute coal followed by petrol, diesel, kerosene, and gas. The findings of the paper are supportive of the hypothesis that Nepal could potentially absorb the hydroelectricity generated in near future if incentive mechanisms are initiated that allow substitution of conventional fossil fuels by the hydroelectricity.</p> Sudheer Awasthi, Naveen Adhikari ##submission.copyrightStatement## Thu, 01 Aug 2019 00:00:00 +0000 Determinants of Flood Disaster Households’ Vulnerability in Nepal <p>Almost all extreme socio economic vulnerabilities relate to natural disasters and its economic loss at household level, along with socio economic characteristics of household. This relationship creates great curiosity estimating determinants and levels of vulnerability at micro level for policy understanding for minimizing household vulnerability. This paper measures empirically the determinants of vulnerability of natural disasters at household level based on primary data sets collected from household survey in Sot Khola water basin by using multiple econometric models. The descriptive analysis shows a huge loss with a worth 13,344,000 Rupees including crops, assets and physical infrastructure. Despite its small worth, life was worst due to loss of house, crops, clean drinking water, electricity, documents, foods, communication, displacement etc. Furthermore, the result of the model shows rural orthodox society having indigenous knowledge and skill, conservative agrarian family, traditional labor force, primitive technology etc. Loss and income of household have positive relationship but labor, early warning and knowledge of disasters have negative relationship. Knowledge of disasters have made household resilient to reduce economic loss and then household vulnerability. Households in the geography of Gadhi and Lekhagaon are more resilient than of Kunathari. Therefore, climate resilience is urgent issue to minimize household vulnerability for household income and welfare.</p> Raghu Bir Bista ##submission.copyrightStatement## Thu, 01 Aug 2019 00:00:00 +0000 Structural Equation Modelling in Microscoping Nepalese Commercial Banks’ Profit Maximization by Risk Minimization <p>This paper examines the degree to which the commercial banks of Nepal used risk management practices and techniques in dealing with different types of risk. The structural equation modeling (SEM) is applied in this study to analyze profit maximization and risk minimization of commercial banks in Nepal. Symmetry and balance to cover four aspects and four components of risk management and use of quantitative data from Banking and Financial Statistics of NRB is considered in the study. SEM is the cross-sectional statistical modeling. Factor analysis, path analysis and regression equation SLs are used for data analysis. Maximum likelihood estimation is the additional estimation equation. The significant findings of the study are: important types of risk being faced by the commercial banks of Nepal like credit risk, operational risk, and interest rate risk. Study also finds that the Nepalese commercial banks staff members properly understand risk and its management. Most of the components of risk management are very sound. There is a strong, positive relationship between risk management practices and understanding of risk and its management, board and senior management oversight, risk assessment and measurement, ownership structure and presence of separate risk manager. Findings of the paper are limited to the RMPs of commercial banks of Nepal. Results help to understand the current practices of Commercial Banks of Nepal. Findings can be used as a valuable feedback on improvement to RMPs and will be of significance to those who are interested in the banking sector of Nepal.</p> Chakra Bahadur Khadka ##submission.copyrightStatement## Thu, 01 Aug 2019 00:00:00 +0000 Household Fuel Transition and Determinants of Firewood Demand in Nepal <p>There is an emerging challenge of providing cleaner fuel to household to avoid various health risks arising from the use of traditional non-cleaner fuel and to cope with the challenges created by climate change. The energy transition theories explain how societies switch from traditional to more advanced fuels that are cleaner and efficient. The paper examines the state of fuel transition and determinants of firewood dependence in Nepal. This paper uses data collected in 2013 from three different ecological zones through household surveys. The findings revealed that biomass fuel particularly firewood is the dominant form of fuel used for household cooking with 84 percent dependence followed by LPG 9 percent, biogas 6 percent and electricity around 1 percent. The findings revealed that energy security through energy stacking is a dominant phenomenon. Presence of alternative fuel that are cleaner and convenient and ecological factors are major determinants of household firewood demand followed by literacy status, landholding size, household size, presence of large ruminant. Firewood consumption had negative relation with its price but the relation was not economically significant. In contrast to the study hypotheses, household income and remittance were not determining factors. In view of wider coverage of electricity, there is prospect for shifting to renewable fuel sources through appropriate pricing and technological improvement policies.</p> Bishnu Prasad Sharma ##submission.copyrightStatement## Thu, 01 Aug 2019 00:00:00 +0000 Title: INDEX OF ECONOMIC FREEDOM, 24th Edition <p>Not Available.</p> Chakra Bahadur Khadka ##submission.copyrightStatement## Thu, 01 Aug 2019 00:00:00 +0000