The effect of foreign remittance on timber imports: Evidence from Nepal

Ram Kumar Adhikari, Neelam Chandra Poudyal, Anusha Shrestha

Research output: Contribution to journalArticlepeer-review


This study investigated the impact of foreign remittance on timber imports in Nepal, a developing country with high remittance flow, using time-series modeling. The results indicated a positive long-term relationship between foreign remittance inflow and both roundwood and sawnwood imports. However, a negative long-term relationship was observed between timber imports and GDP growth, suggesting that the import-based timber industry hasn't created a comparative advantage in the timber market. The short-term models showed that the domestic demand for sawnwood is more stable than for roundwood. The study suggests that as foreign remittance and the national economy grow, ensuring a steady supply of quality, cost-effective sawlogs from domestic producers could support the timber industry's growth, reduce dependence on foreign timber products, and help lower national trade deficits in the long run.
Original languageEnglish
Pages (from-to)323-333
Number of pages11
JournalJournal of Forest Research
Issue number5
StatePublished - 2022

ASJC Scopus Subject Areas

  • Forestry


  • Exchange rate
  • GDP
  • VECM
  • import price
  • roundwood
  • sawnwood

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