An Analysis of the Impacts of COVID-19 on Large-Scale Firms in Nepal

Authors
Ajay Thapa

Despite having a relatively few identified cases of COVID-19, Nepal has been affected by COVID-19 in various ways. To prevent and control the spread of COVID-2019 pandemic, the Government of Nepal has declared lockdown in the country and has prohibited the movement of the general public outside the home except to seek medication and to purchase essential foodstuffs. The industrial sector has been severely affected by this policy. Nepal has over 400,000 small-scale, 1,849 medium-scale and 1,165 large-scale firms - almost all are closed. In this study, Ajay Thapa will assess the impacts of COVID-19 on firms in Nepal, identify the factors moderating the effects of the pandemic, discover the new initiatives developed by firms to recover from the crisis and to limit the effects of crises in the future, and make policy recommendations to other actors on what they can do.

Primary data will be collected from the managers of large-scale firms in Nepal. As of March 2020, 1,165 large-scale firms have been registered at the Department of Industry in Nepal. This register will form the sampling frame for this study. An online survey form will be used and the impacts of the COVID-19 pandemic on firms will be assessed through the changes in the economic aspects of the firms such as production, sales, profit, employment and salary/wage payments before, during and after the crisis. The study also aims to identify the key factors moderating the impacts of of the pandemic by examining heterogeneity in the results across firm and managerial characteristics.

Through the results of this study, specific policy recommendations will be made to government policymakers to identify those most at risk and initiate policies that could mitigate the negative impacts of the COVID-19 pandemic. The project will also help firms and the Government of Nepal to prepare for the negative effects of such crises in the future.

Authors

Ajay Thapa

Pokhara University