Foreign investment in a least developed country: The Nepalese experience

Prema Chandra Athukorala*, Kishor Sharma

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

6 Citations (Scopus)

Abstract

This article aims to contribute to the literature on the developmental role of foreign direct investment (FDI) through an examination of the Nepalese experience. Despite significant liberalization of the foreign investment regime and the introduction of attractive investment incentives, Nepal's achievements, both in terms of the volume of FDI and its developmental impact, failed to match national expectations. Nepal obviously has intrinsic disadvantages arising from its geography and other typographical characteristics in attracting FDI. However, comparable international experience suggests that her lacklustre achievements as a host to foreign investors cannot be explained in terms of these factors alone. Policies that underpin the overall investment climate also seem to matter. Mere liberalization of the investment regime and the introduction of financial incentives are not substitutes for an all-encompassing effort to improve the investment climate.

Original languageEnglish
JournalTransnational Corporations
Volume15
Issue number2
Publication statusPublished - Aug 2006

Fingerprint

Dive into the research topics of 'Foreign investment in a least developed country: The Nepalese experience'. Together they form a unique fingerprint.

Cite this