THE IMPACT OF FOREIGN DIRECT INVESTMENT ON SUSTAINABLE ECONOMIC GROWTH, RESPECTIVELY ON INEQUALITIES BETWEEN COUNTRIES

Mirela Popa (), Anuța Buiga () and Lavinia Becea ()
Additional contact information
Mirela Popa: Babes-Bolyai University, Cluj-Napoca, Romania
Anuța Buiga: Babes-Bolyai University, Cluj-Napoca, Romania
Lavinia Becea: Babes-Bolyai University, Cluj-Napoca, Romania

Business Excellence and Management, 2025, vol. 15, issue 1, 39-58

Abstract: This study aims to examine the effects of FDI (foreign direct investment) on sustainable economic growth in 73 countries and to analyze the impact of FDI on inequalities between countries. The economic growth of a country is measured by the real gross domestic product per capita (GDPpc). The inequalities between countries are measured by the Sustainable Development Goals score, respectively the SDG10 score (reduced inequalities) and the SDG8 score (decent work and economic growth). The study shows that the statistically significant impact of exogenous variables on GDPpc or SDG10 score, differs from one group of countries to another, as follows: (1) in small countries (the size of the population), purchasing power index of exports (PPexp) negatively affects GDPpc, while productive capacities index and FDI inward positively affect GDPpc; (2) in large countries, PPexp (negatively) and GDP growth (positively) affect SDG10; (3) in developed countries, PPexp negatively affects GDPpc; (4) in developing countries Gross Fixed Capital Formation Inward (positively) and GDP growth (negatively) affect GDPpc. FDI inward and Gross Fixed Capital inward have negative impact on SDG10, while FDI outward and Gross Fixed Capital outward positively affect SDG10, only in developing countries; (5) in high-income countries, FDI positively affects GDPpc; (6) GDP growth has a positive and statistically significant impact on SDG10 only in upper-middle countries. The multiple regression coefficients that highlight the impact of exogenous variables on SDG8, do not highlight differences between high-income, upper-middle-income and lower-middle-income countries.

Keywords: Foreign direct investment; Gross domestic product per capita; Sustainable development goals; Productive capacities index; Purchasing power index of exports (search for similar items in EconPapers)
Date: 2025
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://beman.ase.ro/no151/4.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rom:bemann:v:15:y:2025:i:1:p:39-58

Access Statistics for this article

Business Excellence and Management is currently edited by Zamfir Andreea

More articles in Business Excellence and Management from Faculty of Management, Academy of Economic Studies, Bucharest, Romania Contact information at EDIRC.
Bibliographic data for series maintained by Zamfir Andreea ().