Role of FDI in Economic Growth and Development: An Empirical Study

Abstract

The significance of foreign direct investment (FDI) in economic development and growth is examined in this research. The effect of FDI on different economic indicators, such as the gross domestic product (GDP), exports, and employment, is examined in the paper using econometric analysis after reviewing pertinent academic literature on the topic. The overview of the literature also examines studies that investigate the elements that draw FDI to a specific nation and the policy ramifications for developing nations looking to draw FDI. The research that formed the basis of the review clarifies and aids in our understanding of the contention that FDI, especially in nations with sound institutions and good governance, can have a significant influence on socio-economic development and growth. However, the research also highlights the importance of adopting appropriate policies and strategies to maximize the benefits of FDI and minimize potential risks. Overall, the findings of this study provide valuable insights into the influence of FDI in economic growth and development, and can help inform policy decisions related to foreign investment.