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Measuring Wage Inequality of Foreign Direct Investment Industries in Nepal: Gini Coefficient Analysis

Bista, Raghu (2005): Measuring Wage Inequality of Foreign Direct Investment Industries in Nepal: Gini Coefficient Analysis. Published in: Economic Journal , Vol. 109, No. 2 (9 May 2005): pp. 25-33.

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Abstract

Foreign Direct Investment (FDI) is an example of inflow and outflow of capital in the World after the globalization initiation. Its possible significant role in developing country like Nepal makes it as an alternative source of foreign capital for mitigating the huge resource gap in the course of development, instead of foreign debt. In Nepal, the structural adjustment has been adopted with economic reform for liberalization for attracting FDI. Significantly smaller FDI inflow statistics in the South Asian context has made an issue related to its unknown outcomes, despite some empirical studies. Similar condition is found its effect on wage level and wage equality led poverty.

This paper empirically assesses to wage inequality and status in the operating FDI industries in Nepal through the Gini Coefficient measurement. This study is based on the primary data collected through the direct questionnaire and case study method from the sample FDI industries.

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