EFFECT OF MONEY SUPPLY, INFLATION AND CAPITAL EXPENDITURE ON ECONOMIC GROWTH IN NEPAL

This study aims to examines the effect of money supply, inflation, and capital expenditure on economic growth in Nepal. of tourism on economic growth in Nepal. The data were taken from the period of 2000 to 2020 for the study. The main purpose of the study is to use the ARDL and ECM models to analyze money supply, inflation and capital expenditure has affected Nepal’s economic growth. Utilizing secondary data, descriptive and analytical research methods have been applied. Gross Domestic Product (GDP) is taken as dependent variable Broad money supply (M2), Inflation (INF) and Capital Expenditure (CE) are taken as independent variables. The results of the study revealed that there is a negative and insignificant effect of money supply on gross domestic product whereas inflation has positive and significant effect on gross domestic product. Also, capital expenditure has a positive and insignificant effect on gross domestic product.