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Foreign Direct Investment and Economic Growth: Evidence from Asian Selected Countries

Author

Listed:
  • Sheida Soleimani

    (Department of Economics of Shiraz University)

  • Mehdi Behname

    (Department of Economics of Ferdowsi University of Mashhad (FUM))

Abstract

The purpose of this paper is to investigate the influence of foreign direct investment (FDI) on economic growth in Asian countries for the years 1980-2010. The IPS unit root test indicates that variables are stationary in level and Hausman test proves that we should apply the random effects model. Having estimated the model we come to the conclusion that FDI has positive and significant effect on economic growth and variables such as human capital, economic infrastructure and capital formation have positive effect on GDP. However, population, technology gap and inflation have negative effect on the economic growth.

Suggested Citation

  • Sheida Soleimani & Mehdi Behname, 2012. "Foreign Direct Investment and Economic Growth: Evidence from Asian Selected Countries," Economic Analysis, Institute of Economic Sciences, vol. 45(3-4), pages 67-74.
    • Handle: RePEc:ibg:eajour:v:45:y:2012:i:3-4:p:67-74
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    Citations

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    Cited by:

    1. Zaira ADNAN & Mamta CHOWDHURY & Girijasankar MALLIK, 2019. "Foreign direct investment and total factor productivity in South Asia," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(619), S), pages 105-120, Summer.
    2. Strike Mbulawa, 2017. "Remittances, Foreign Direct Investment and Growth in SADC: A Panel Co-integration Approach," Journal of Finance and Economics Research, Geist Science, Iqra University, Faculty of Business Administration, vol. 2(1), pages 40-55, March.
    3. Olawumi Dele Awolusi & Abdihakim Mohamed Osman, 2023. "Determinants of Export Performance in Uganda (1989-2020)," Journal of Economics and Behavioral Studies, AMH International, vol. 15(3), pages 34-54.
    4. Hlongwane, Nyiko Worship & Mmutle, Tumelo Donald & Daw, Olebogeng David, 2021. "The relationship between foreign direct investment and economic growth in SADC region from 2000 to 2019: An econometric view," MPRA Paper 111008, University Library of Munich, Germany.
    5. Safwat Alaa & Salah Ashraf & Elsherif Marwa, 2021. "The Impact of Foreign Direct Investment on the Economic Growth of Egypt (1980-2018)," International Journal of Economics and Financial Issues, Econjournals, vol. 11(5), pages 74-85.

    More about this item

    Keywords

    Foreign direct investment; economic growth; Asia; panel data;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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