1 AIT Asian Institute of Technology

Foreign direct investment in Bhutan : a qualitative assessment of key prospects and challenges

AuthorGyeltshen
Call NumberAIT RSPR no.SM-07-27
Subject(s)Investments, Foreign--Bhutan

NoteA research study submitted in partial fulfillment of the requirement of the degree of Master of Business Administration
PublisherAsian Institute of Technology
AbstractOver the last several decades, foreign direct investment (FDI) has become instrumental vehicle for fueling the integration process of the world economy. The worldwide FDI growth in recent past has been phenomenal even outpacing the growth of international trade. It is generally accepted facts that FDI brings innumerable benefits on the economy of a host country by positively influencing the domestic production, employment, income, prices, export, import, economic growth, balance of payment, and the general welfare of the recipient country. As a result many aspiring countries are increasingly opening up their economy in favour of free trade and market liberalization in competition to entice multinationals enterprises (MNEs). Not all countries, however, have been equally successful as others despite similar desire and efforts because the literature maintains that any potential host country should possess certain locational advantages to influence the motivation of MNEs. This study makes qualitative investigation whether or Bhutan satisfies those basic locational conditions or 'pull factors' that are generally prescribed in many theoretical and empirical literature and identifies key prospects and challenges that foreign investors in general would have to face in Bhutan. The study concludes that the country has several structural constraints undermining the general attractiveness for foreign direct investment and recommends pursuing more focused and strategic investment framework to target right type of FDI that best leverages its comparative advantages and at the same time achieve its national policy objectives.
Year2007
TypeResearch Study Project Report (RSPR)
SchoolSchool of Management (SOM)
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration (MBA) (Publication code=SM)
Chairperson(s)Tang, John C. S.
Examination Committee(s)Swierczek, Fredric W.;Sununta Siengthai
Scholarship Donor(s)Government of Austria
DegreeResearch Studies Project Report (M.B.A.) - Asian Institute of Technology, 2007


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