Liberalization and Productivity Growth: The Case of Manufacturing Industry in Nepal

Relatively few studies have empirically examined the link between productivity growth and policy liberalization, and the evidence, though generally supportive of the hypothesis, is somewhat mixed and the levels and changes in growth rates vary substantially across countries. There is clearly need to better understand what other factors may influence the final outcome. In this paper we examine the experience of the Nepalese manufacturing sector during the 1972-94 period and explore the validity of this proposition.