Reasons for Bhutan's Low Foreign Direct Investment (FDI) Inflows

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Foreign Capital
Bhutan is a landlocked country located in South-Central Asia. Ideally, the country’s Gross domestic product has remained relatively low as compared to other developing countries. According to a report by the United Nations Conference on Trade and Development (UNCTAD), Bhutan’s total stock in 2019 was approximately $141 million. Additionally, the country’s Foreign Direct Investment (FDI) inflows in 2017 were negative $10 million but had recovered in 2018 to $6 million and further increased to $7 million in 2019 (Santander). Further, although Bhutan’s FDI continues to increase, it remains among the Asian countries with the least FDI, and this has been attributed to the country’s small size. In 2018, Bhutan attracted about $20.8 million worth of FDI, which was attributed to large capital-intensive projects in different areas such as IT and hotels. The service sector in Bhutan attracts the most FDI. India remains the largest investor in Bhutan...