TAILIEUCHUNG - Understanding the impact of inward FDI and economic growth

With liberalization of trade and markets nations across globe are able to overcome capital scarcity with inflow of Foreign Direct Investment (FDI). FDI is an important factor in the globalization process as it provides opportunities and financial challenges around the world promotes stable and lasting economic links between countries through direct access to investors in home economies to production units of the host economies. Understanding the influence/impact of inward FDI on economic growth is a dynamic area to study for researchers, as the empirical evidence on impact of FDI inflow on and economic growth are mixed, which deserves fresh enquiry. Objective of this paper is to identify the long term equilibrium relationship among inward FDI and gross domestic product, which will help one to understand the impact of inward FDI on economic growth. Gross Domestic Product (GDP) is proxied for economic growth. This is an empirical research and the research design is longitudinal in nature. Results of this study indicate that there exist a long run cointegrating relationship between inward FDI and GDP, the two variables for the study period from 1970-2010. 1% change in GDP will raise FDI inflow by . The adjustment coefficient of the Error Correction Term (ECT) is negative and statistically significant indicating positive adjustment effect, which ensures, that in case of any external shocks, the long term equilibrium can be reverted back, and will re-ensures equilibrium between FDI inflow and GDP. | Article ISSN 2348-3784 Understanding the Impact of Inward FDI and Economic Growth J. C. Sharmiladevi Digital Object Identifier tbr 2017 v5 n1 149501 Abstract With liberalization of trade and markets nations across globe are able to overcome capital scarcity with inflow of Foreign Direct Investment FDI . FDI is an important factor in the globalization process as it provides opportunities and financial challenges around the world promotes stable and lasting economic links between countries through direct access to investors in home economies to production units of the host economies. Understanding the influence impact of inward FDI on economic growth is a dynamic area to study for researchers as the empirical evidence on impact of FDI inflow on and economic growth are mixed which deserves fresh enquiry. Objective of this paper is to identify the long term equilibrium relationship among inward FDI and gross domestic product which will help one to understand the impact of inward FDI on economic growth. Gross Domestic Product GDP is proxied for economic growth. This is an empirical research and the research design is longitudinal in nature. Results of this study indicate that there exist a long run cointegrating relationship between inward FDI and GDP the two variables for the study period from change in GDP will raise FDI inflow by . The adjustment coefficient of the Error Correction Term ECT is negative and statistically significant indicating positive adjustment effect which ensures that in case of any external shocks the long term equilibrium can be reverted back and will re-ensures equilibrium between FDI inflow and GDP. Keywords Foreign Direct Investment Economic growth Gross Domestic Product Cointegration Vector Error Correction Introduction In the last two decades Foreign Direct Investment FDI has emerged as one of the major source for globalization and a significant catalyst for economic growth transferring technology and knowledge .

• Kinh tế học
• Foreign direct investment
• Economic growth
• Gross domestic product
• Vector error correction
• Inward fdi and economic growth
• Foreign investment
• Foreign direct investment in India
• Patterns of foreign direct investment
• Secondary data
• Factors affecting foreign direct investment attraction
• Factors affecting foreign direct investment attraction a case study
• Thai Nguyen province
• Foreign direct investment attraction
• The provincial and central government
• Sovereign credit ratings
• Determinants of foreign direct investment
• Evidence from Turkey
• International Journal of Computer Networks and Communications Security
• The factors affecting the performance
• of foreign direct investment enterprises in Vietnam
• Foreign direct investment enterprises
• Multiple regression analysis
• Identify factors affecting foreign direct investment capital
• The southern key economic region
• Fix Effect Model
• Random Effect Model
• Foreign direct investment capita
• Summary of Doctoral thesis
• The impact of foreign direct investment
• Macroeconomic fluctuations
• Foreign direct investment inflows
• Effectively use FDI
• Autoregressive approach
• Foreign direct investment in Ghana
• Positive effect on FDI
• Cointegrating relationship between FDI
• Impact of foreign direct investment
• CO2 emissions in ASEAN countries
• CO2 emissions
• Carbon emissions
• Granger causality tests
• Financial development
• Linkages between foreign direct investment
• Econometric methodology
• Descriptive statistics and correlation matrix
• Energy consumption
• Granger causality
• Growth rates of FDI
• Foreign direct investment and financial development
• New insights threshold approach
• Outward foreign direct investment
• Digital economy
• Digital transformation
• Economic activities
• International business
• Kinh tế quốc tế
• Lecture International business
• Global business
• Domestic investment
• Long term economic growth
• Promoting economic growth
• Investment Development Path
• Dunning’s investment development path model
• Total import export turnover
• Macroeconomic factors
• Summary of the thesis Doctor
• Summary of the thesis Doctor Investment economics
• Investment economics
• Mutual effects between localities
• Attracting foreign direct investment
• Doctoral thesis summary
• Development economics
• Impacts of direct investment
• Import and export in Vietnam
• Vietnam's economic development
• Exchange rate
• Vector error correction model
• Gross domestic investment
• Exchange rate in Vietnam
• Economic growth in Vietnam
• Direct Investment
• Corruption Relieve
• Relieve Foreign
• Foreign Direct
• the United States
• Tạp chí khoa học
• Thailand’s Investment
• Relationship between Thailand and Vietnam
• Tạp chí kinh tế
• Special topic
• South Korea to Vietnam
• Vietnam in recent years
• Increasing investment capital
• Agricultural sector
• Investment partners
• Hi tech agriculture
• Descriptive statistics method
• An Overview
• Investment Agreements
• Investment Protection
• Bilateral Investment
• Investment Treaties
• Grand Bargain
• Vietnam’s OFDI
• FDI from Vietnam
• Outward direct investment
• Market entry method