The Impact of Trade Deficits and the Burden of Crisis Oriented Economy on the Livelihoods of Nepali People

29,164,578 people are living in Nepal.Out of them,48.96%are men and 51.04%are women.The growth rate of the population is 0.93%annually.However,216,957 individuals had been abroad for employment,education or other reasons.It has developed an addiction to imported products using remittances.The government delays spending the money allotted for capital improvements.The debt incurred by loans received from donors exceeds between 20 trillion and 80 billion of Nepal’s entire yearly budget.Based on statistics from Nepal Rastra Bank fiscal years 2021/2022,export and import contributions to overall Nepal’s foreign commerce were 8.40%and 91.60%,respectively.Due to the burden of debt and increasing trade deficit in the Nepalese economy,it has greatly affected the livelihood of the people.The increase in the prices of goods has made the lives of ordinary and low-income citizens very difficult.To reduce it,it is necessary to increase the production of indigenous products and promote their trade.Nepal needs to improve its ability to balance imports and exports.Economic dependency will reduce and the nation’s focus on self-sufficiency will increase if the market is extended by raising the output of locally produced items.There will be an increase in hazards as the state’s ability to function weakens.No nation can be entirely self-sufficient in the open global market of today by producing all the commodities and services it requires.Economic dependency will reduce and the nation’s focus on self-sufficiency will increase if the market is extended by raising the output of locally produced items.There will be an increase in hazards as the state’s ability to function weakens.

Scale and scope economies in small household rice farming in Vietnam

The Vietnamese agricultural sector has experienced a dramatic structural change based on increased specialization in rice cultivation.However,small-scale rice-farmers have continued to grow multiple crops,especially in less developed provinces.While the literature advocates crop diversification for reasons of both economic and ecological sustainability,there lacks empirical evidence as to whether crop diversification brings efficiency and productivity gains to small farms.The present study is the first applications of the input-oriented stochastic distance function approach in estimating scale and scope economies using data of multi-crop farming households in Vietnam.We find strong evidence of product-specific economies of scale.Scope economies are also present for rice,vegetable,and other annual crop production.This suggests that crop diversification enhances efficiency and productivity.However,there still exists significant technical inefficiency in crop production,indicating opportunities to expand farm output at the existing level of inputs and technologies.More specifically,our empirical results indicate that it is desirable to expand vegetable and other annual crop production in mountainous areas while rice cultivation can be further expanded in delta and coastal regions.