by the Government of Nepal. The analysis utilizes customs-level data for 2011-14, combined with information on the … subsidy payments made to individual firms provided by the Central Bank of Nepal. The Cash Incentive Scheme for Exports cash …

trade policies. We examine here the consequences of such a “Gulliver” effect, looking at the case of Nepal whose economy is … closely linked to the economy of India. Since India’s protective policies are not optimal for Nepal, we consider the various … alternatives for Nepal. The “optimal divergence” is for Nepal to allow the free import of intermediate and capital goods, while …