Foreign Direct Investment in Nepal

Foreign Direct Investment (FDI) emerges as new source of resources in the world economy along with economic integration. This is observed most favorable but debatable resource. In Nepal, the policy response to FDI is found increasing by the liberal policy in WTO eras, although it is debatable issue in the academic and business community. Size, structure and trend of FDI inflow in Nepal determines its degree of effectiveness in South Asian context. This paper focuses on the relationship of FDI with Economic growth and export trade to India and third world countries to understand FDI ‘s contribution to Nepalese economy. This has tested a simple regression model based on based on the secondary data.