Nepal’s Civil War and Its Economic Costs

This paper estimates the macroeconomic effects of increased spending on defense and internal security necessitated by the decade-long Maoist insurgency in Nepal. An investment equation is specified to examine the relationship between defense spending and investment. The estimation results indicate...

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Main Author:	Gyan Pradhan
Format:	Article
Language:	English
Published:	Lindenwood University 2009-11-01
Series:	Journal of International and Global Studies
Online Access:	http://www.lindenwood.edu/jigs/docs/volume1Issue1/essays/114-131.pdf

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spelling	doaj-23e867e000004ef6979aad640c4cc54d2020-11-25T00:09:31ZengLindenwood UniversityJournal of International and Global Studies2158-06692009-11-0111114131Nepal’s Civil War and Its Economic CostsGyan PradhanThis paper estimates the macroeconomic effects of increased spending on defense and internal security necessitated by the decade-long Maoist insurgency in Nepal. An investment equation is specified to examine the relationship between defense spending and investment. The estimation results indicate that there is a significant negative effect of defense spending on investment. A simple Harrod-Domar growth relationship is used to estimate the effect of the increase in defense spending on economic growth. This analysis suggests that between 1996 and 2006, the opportunity cost of the conflict in terms of lost output has been about 3 percent of Nepal’s current GDP.http://www.lindenwood.edu/jigs/docs/volume1Issue1/essays/114-131.pdf
collection	DOAJ
language	English
format	Article
sources	DOAJ
author	Gyan Pradhan
spellingShingle	Gyan Pradhan Nepal’s Civil War and Its Economic Costs Journal of International and Global Studies
author_facet	Gyan Pradhan
author_sort	Gyan Pradhan
title	Nepal’s Civil War and Its Economic Costs
title_short	Nepal’s Civil War and Its Economic Costs
title_full	Nepal’s Civil War and Its Economic Costs
title_fullStr	Nepal’s Civil War and Its Economic Costs
title_full_unstemmed	Nepal’s Civil War and Its Economic Costs
title_sort	nepal’s civil war and its economic costs
publisher	Lindenwood University
series	Journal of International and Global Studies
issn	2158-0669
publishDate	2009-11-01
description	This paper estimates the macroeconomic effects of increased spending on defense and internal security necessitated by the decade-long Maoist insurgency in Nepal. An investment equation is specified to examine the relationship between defense spending and investment. The estimation results indicate that there is a significant negative effect of defense spending on investment. A simple Harrod-Domar growth relationship is used to estimate the effect of the increase in defense spending on economic growth. This analysis suggests that between 1996 and 2006, the opportunity cost of the conflict in terms of lost output has been about 3 percent of Nepal’s current GDP.
url	http://www.lindenwood.edu/jigs/docs/volume1Issue1/essays/114-131.pdf
work_keys_str_mv	AT gyanpradhan nepalscivilwaranditseconomiccosts
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Nepal’s Civil War and Its Economic Costs

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