Impact of Agriculture on Economic Development of Nepal using Statistical Model

Nepal has many factors that influence economic development one of the factors in agriculture. The main objectives of this paper are to examine the status of the economic growth of Nepal and dependency on economic growth in Agriculture illustrating statistically. The quantitative cum survey method is employed here to analyse the relationship between the economic growth of Nepal and Agriculture. The macro data used here are based on a secondary source. The data are taken from an economic survey published by the Ministry of Finance, Government of Nepal. Statistical tools like regression analysis, correlations, the coefficient of multiple determinations and the adjusted coefficient of determination have been employed. In Nepal, over the last fifteen years, poverty has remarkably come down despite lower economic growth meaning that reducing poverty would be much easier if the economic growth rate could be increased. Regarding economic growth contribution of the agriculture sector to GDP is gradually decreasing every year, while that of the non-agriculture sector increasing. The contribution of the agriculture sector to GDP is estimated to stand 27.7% and 72.3% respectively in the FY 2019/2020 while their contribution during FY 2018/2019 was 27.0% and 73.0% respectively