Abstract: The Trans-Himalaya region is an important part of the "Maritime Silk Road". The investigation over the relationship between investment environment and inward foreign direct investment (INFDI) is of great significance to the construction of the "Maritime Silk Road". In this paper, the five major economies in the Trans-Himalaya region are sampled, of which financial, economic, political, and overall investment environment index are estimated based on the PRRG Group's ICRG data, and the empirical analyses on the impact of the investment environment over INFDI are conducted bases on the investment environment index estimations. The analyses show that (1) the financial, economic and over investment environments in Trans-Himalaya region are improving and integrating regionally, but (2) the political investment environment has been even deteriorating, and the political differences among countries are huge. And the empirical results manifest that (3) in trans-Himalayas region, the impacting channels of investment environment on INFDI exist, but(4) the operational mechanism between the investment environment indicators and INFDI has not yet been functional well. The analysis findings of this paper are conducive to recognizing and managing investment risks in the region, and inspiring for host governments in the region to lay out policies in promoting INFDI.

Key words: trans-himalaya region, investment environment, INFDI