Abstract
This study has been conducted for the comparative study of contribution of foreign direct investment and domestic investment in Nepalese economy. For this theoretical analysis, different research studies have studied to draw the fundamental issues of effect of FDI and domestic industrial investment in the economy. The simple linear regression model has been applied to measure the impact of FDI and domestic investment on GDP and industrial GDP as well as employment. The contribution of FDI and domestic industrial investment has been analyzed by taking the data of 20 years during the period of 2000/01-2019/20. There has been significant contribution of FDI and domestic industrial investment in Nepalese economy. The results show that there are significant positive relationship between FDI and domestic industrial investment on GDP, industrial GDP and employment in the study periods.
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