Industrialization and Global Value Chain Participation: An Examination of Constraints Faced by the Private Sector in Nepal

This paper examines the constraints faced by Nepal, a least developed landlocked country, in participating in regional and global value chains. It analyzes key economic data, reviews recent and relevant publications, and draws on interviews with policy makers and stakeholders. The paper identifies behind-and beyond-the-border factors that reduce competitiveness and the ability of the private sector to participate and benefit from regional and global value chains. It also conducted case studies with two leading firms in Nepal.

  • Abstract
  • Introduction
  • Profile of the Economy
  • Industrial Policy in Nepal
  • Effectiveness and Impact of Industrial Policy
  • Global Value Chain Participation and Private Sector Experience
  • Constraints to Industrial Development and Global Value Chain Participation
  • Lessons from Nepal: The Importance of Effective Industrial Policy
  • Appendix: Trade and Manufacturing Data
  • References

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