ISSN: 2222-6990
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Foreign direct investment can lead to strategic aims in power industry as well as economic growth. The aim of the current study is to measure the relationship between foreign direct investment and power production in Nepal while the energy consumption, economic growth, imports and exports has been used as macroeconomic variables. The results show that FDI has significant positive impact on power production. With the increase in FDI power consumption and power production will also increase. GDP also has positive impact on Power consumption. GDP is significant at 10 percent level of significance. Greater the GDP greater will be the consumption of electricity. Results of auto regressive distributive lag model in short run is found to be 0.98 which shows that 98 % variations the model is good fit. The findings of short run ARDL model. While the Kurtosis and Skewness defines the shape of the distribution. It is understandable from the table 1 that the variables are only positively skewed excluding in the analysis. Kurtosis is an indicator to show the shape of distribution. And if the value greater then 3, it’s called leptokurtic and the probability distribution is not normally distributed. The study provides a valuable guideline for decision and policy makers.
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In-Text Citation: (Rabbani, 2018)
To Cite this Article: Rabbani, M. (2018). Impact of Foreign direct investment on Power production: Evidence from Nepal. International Journal of Academic Research in Business and Social Sciences, 8(11), 1–12.
Copyright: © 2018 The Author(s)
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