FDI trends and performance
- Author: United Nations
- Main Title: Investment Policy Review - Nepal , pp 1-11
- Publication Date: December 2003
- DOI: https://doi.org/10.18356/52cf7707-en
- Language: English
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The volume of FDI inflows into Nepal has been small, averaging only about $8 million annually. The inevitable consequence is that FDI has not been an important source of aggregate investment finance and its impact on economic development has also been minimal. A comparison with selected high and low performing Asian countries brings out the underperformance of Nepal in terms of FDI inflows. As Nepal has some niche sectors such as tourism and herbal products, potential exists for the country to attract FDI in such sectors. Even though most sectors are open to FDI and the standard of treatment has been fairly good, the FDI potential has not materialized. An overall improvement in the business climate is called for to make it more investor-friendly.
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