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The impact of foreign direct investment (FDI) on economic growth

Author

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  • Shafique, Shoaib
  • Hussain, Zahid

Abstract

Foreign direct investment (FDI) has gotten distinguished and the most gainful strategy for drawing streams originating from external assets. The use of this technique has likewise transformed into a significant piece of making financing capital flow into nations around the world. For developing nations far and wide, this productive impact joined with foreign transactions has developed constantly well and is referred to as an instrument for investment development (Muhammad, 2007). FDI has numerous benefits on creating better economic output, for example, it raises profit level for entrepreneurs, reduces unemployment and opens avenues for fares and innovative headways for financial gurus and nations

Suggested Citation

  • Shafique, Shoaib & Hussain, Zahid, 2015. "The impact of foreign direct investment (FDI) on economic growth," MPRA Paper 66337, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:66337
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    File URL: https://mpra.ub.uni-muenchen.de/66337/1/MPRA_paper_66337.pdf
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    References listed on IDEAS

    as
    1. Alfaro, Laura & Chanda, Areendam & Kalemli-Ozcan, Sebnem & Sayek, Selin, 2004. "FDI and economic growth: the role of local financial markets," Journal of International Economics, Elsevier, vol. 64(1), pages 89-112, October.
    2. Mohsin Hasnain Ahmad & Shaista Alam & Mohammad Sabihuddin Butt, 2003. "Foreign Direct Investment, Exports, and Domestic Output in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 42(4), pages 715-723.
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    Cited by:

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    2. Ayesha Serfraz, 2018. "Analyzing Short-Run and Long-Run Causality between FDI Inflows, Labor Productivity and Education in Pakistan," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 5(1), pages 36-59.

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    More about this item

    Keywords

    fdi; growth; economic policy; developing countries;
    All these keywords.

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • F15 - International Economics - - Trade - - - Economic Integration
    • F18 - International Economics - - Trade - - - Trade and Environment

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