Trade, FDI and Remittances: English 2021

This book is a collection of my articles and papers that were published over a period of three decades and covers three important subjects of the external sector, namely trade, foreign direct investment (FDI) and remittances. These writings are primarily based on the experiences of Nepal, but also applicable to other developing economies. In recent decades, countries have been open to trade as well as to international flows such as FDI and remittances. Trade openness contributes to long-run economic growth of developing countries as they grow faster, improve productivity and provide higher income to their citizens. Likewise, FDI has been a growing source of capital, and studies have demonstrated that it can have a positive impact on economic growth. However, FDI is not an automatic process and policies do matter for creating an investment-friendly climate. Remittances, on the other hand, have been effective in lowering poverty. Moreover, the development potential of remittances is largely associated with the productive use of these transfers.