Impact of Japanese Foreign Aid: An Analysis on Economic Development of Nepal

Abstract

The role of foreign aid in economic development remains debatable in economic literature. Some studies empirically proved its positive impact on economic growth, while some studies emphasized its undesirable effects. In Nepal, several economists have tried to find out the non-optimal utilization of foreign aid in the economic development of Nepal. The focus of the study is an analytical component of the impact of Japanese support and its role on the economic development of Nepal. Recently, the government’s development slogan ‘Prosperous Nepal and Happy Nepali’ would definitely positive with the proper use of Japanese aid on the economic development of Nepal. The goal of this study is to analyze the impact of Japanese help on the overall economic development of Nepal. The methodological tool has been totally based on secondary data and verified quantitatively with the statistical test of significance. The result of the study has been positively analyzed. This research article concludes that the impact of Japanese aid in the economic development of Nepal, which would be definitely constructive for the economic growth of Nepal.