Key sector identification of Nepal: an integrated approach with linkage and hypothetical extraction method
Abstract This study presents the first comprehensive key sector analysis for Nepal, using an integrated approach of linkage analysis and hypothetical extraction method with the 2022 input–output table. The empirical analysis identifies three strategically crucial sectors. Agriculture emerges as the...
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| Format: | Article |
| Language: | English |
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SpringerOpen
2025-02-01
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| Series: | Journal of Economic Structures |
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| Online Access: | https://doi.org/10.1186/s40008-025-00346-5 |
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| author | Lila Ballav Bhusal |
| author_facet | Lila Ballav Bhusal |
| author_sort | Lila Ballav Bhusal |
| collection | DOAJ |
| description | Abstract This study presents the first comprehensive key sector analysis for Nepal, using an integrated approach of linkage analysis and hypothetical extraction method with the 2022 input–output table. The empirical analysis identifies three strategically crucial sectors. Agriculture emerges as the economy’s foundation, demonstrating the highest impact on both output and value-added generation, reflecting its fundamental role in employment and GDP contribution. Wholesale Trade exhibits balanced demand–supply effects through market integration, while Financial Intermediation shows strong supply-side influence through credit intermediation services. Moreover, Construction and the Electricity, Gas, and Water Supply sectors play vital supporting roles, enhancing infrastructure development and leveraging extensive hydropower resources to boost growth potential. The analysis reveals interesting disparities between output and income generation across sectors, particularly in the Food, Beverages, and Tobacco sector. These empirical findings align with and provide evidence-based support for recent government initiatives. While acknowledging methodological limitations regarding employment and environmental data, this research establishes an evidence-based framework for strategic sector prioritization and offers policy recommendations for sustainable economic development. |
| format | Article |
| id | doaj-art-3d0a984363284f9d858b3402e58a226d |
| institution | Kabale University |
| issn | 2193-2409 |
| language | English |
| publishDate | 2025-02-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Journal of Economic Structures |
| spelling | doaj-art-3d0a984363284f9d858b3402e58a226d2025-02-09T12:13:13ZengSpringerOpenJournal of Economic Structures2193-24092025-02-0114112110.1186/s40008-025-00346-5Key sector identification of Nepal: an integrated approach with linkage and hypothetical extraction methodLila Ballav Bhusal0Graduate School of International Social Sciences, Department of Economics, Yokohama National UniversityAbstract This study presents the first comprehensive key sector analysis for Nepal, using an integrated approach of linkage analysis and hypothetical extraction method with the 2022 input–output table. The empirical analysis identifies three strategically crucial sectors. Agriculture emerges as the economy’s foundation, demonstrating the highest impact on both output and value-added generation, reflecting its fundamental role in employment and GDP contribution. Wholesale Trade exhibits balanced demand–supply effects through market integration, while Financial Intermediation shows strong supply-side influence through credit intermediation services. Moreover, Construction and the Electricity, Gas, and Water Supply sectors play vital supporting roles, enhancing infrastructure development and leveraging extensive hydropower resources to boost growth potential. The analysis reveals interesting disparities between output and income generation across sectors, particularly in the Food, Beverages, and Tobacco sector. These empirical findings align with and provide evidence-based support for recent government initiatives. While acknowledging methodological limitations regarding employment and environmental data, this research establishes an evidence-based framework for strategic sector prioritization and offers policy recommendations for sustainable economic development.https://doi.org/10.1186/s40008-025-00346-5Key economic sectorsInput–output analysisLinkage analysisHypothetical extraction methodNepal |
| spellingShingle | Lila Ballav Bhusal Key sector identification of Nepal: an integrated approach with linkage and hypothetical extraction method Journal of Economic Structures Key economic sectors Input–output analysis Linkage analysis Hypothetical extraction method Nepal |
| title | Key sector identification of Nepal: an integrated approach with linkage and hypothetical extraction method |
| title_full | Key sector identification of Nepal: an integrated approach with linkage and hypothetical extraction method |
| title_fullStr | Key sector identification of Nepal: an integrated approach with linkage and hypothetical extraction method |
| title_full_unstemmed | Key sector identification of Nepal: an integrated approach with linkage and hypothetical extraction method |
| title_short | Key sector identification of Nepal: an integrated approach with linkage and hypothetical extraction method |
| title_sort | key sector identification of nepal an integrated approach with linkage and hypothetical extraction method |
| topic | Key economic sectors Input–output analysis Linkage analysis Hypothetical extraction method Nepal |
| url | https://doi.org/10.1186/s40008-025-00346-5 |
| work_keys_str_mv | AT lilaballavbhusal keysectoridentificationofnepalanintegratedapproachwithlinkageandhypotheticalextractionmethod |