How does foreign direct investment promote economic growth?

O‘tkirova Bonu Azamat Kizi

GREEN ECONOMY AND DEVELOPMENT, 2024, vol. 2, issue 9

Abstract: Although there is considerable evidence on the link between foreign direct investment (FDI) and economic growthin developing countries, causal patterns of the two variables has not been investigated yet with a reliable procedure. Eventhough, FDI is expected to boost host economic growth, it is shown that the extent to which FDI is growth-enhancingappears to depend on country-specific characteristics. Particularly, FDI tends to be more likely to promote economicgrowth when host countries adopt liberalized trade regime, improve education and thereby human capital conditions,encourage export-oriented FDI, and maintain macroeconomic stability.

Keywords: FDI; host country; calibration; spillover efficiency; MNE; goods sector; micro and macro empirical evidence and others. (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:teu:ged000:v:2:y:2024:i:9:id:2915

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