Open accesscreativecommonsEditorial reviewed/Short paper
Published online:October 2023

Structure, functioning, and role of co-operatives in the Nepalese economy

Srijana ShresthaORCID and Shiva Chandra DhakalORCID

Vol 55 No 2, pp. 20-28


How to cite this article: Shrestha, S. & Chandra Dhakal, S. (2022). Structure, functioning, and role of cooperatives in the Nepalese economy. Journal of Co- operative Studies, 55(2), 20-28. https://


This short paper outlines research investigating the structure, operation, and role of co-operative groups in economic development in Nepal. Microsoft Excel and STATA 16 were used to examine the secondary data collected. In the fiscal year 2020/21, 125 co-operatives (0.42 per cent) are governed by the federal government, 6002 (20.08 per cent) by the provincial government, and 23,759 (79.50 per cent) by the local government. These co-operatives provide direct employment to 88,309 people. The province with the most co-operatives is Bagmati (10,418), where the Gross Domestic Product (GDP) growth rate is the highest (37.7 per cent), and the province with the least co-operatives is Karnali (1967), which has the lowest GDP growth rate (4 per cent). This suggests that the number of co‑operatives in a province influences GDP growth rate (per cent) in that province. The paper concludes by suggesting enabling the development of co-operatives at provincial level can be a significant means in uplifting the overall economic growth of the nation.



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UK Society for Co-operative Studies is registered in England and Wales as a charitable incorporated organisation Number 1175295. Our registered office is Holyoake House, Hanover Street, Manchester, M60 0AS.
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