The Impact of Foreign Direct Investment on Economic Growth in the Gulf Cooperation Council Countries

Abstract

The Gulf Cooperation Council countries have worked to achieve a remarkable upward trend in the flow of foreign direct investment to support economic growth policy, as it is the most important source of external financing that transmits modern technology in addition to increasing the opportunities for national employment and development of one's administrative and technical skills. In this regard, this research paper aimed to measure the impact of (FDI) on the economic growth of the six GCC countries over the period 2000-2021, Based on Balanced panel data and the statistical program Stata. In the analysis of variables related to (FDI) and its impact on the growth represented by the average real GDP per capita. The results of the assessment concluded that there is a positive impact of (FDI) at a significant level of 1%, meaning that an increase in (FDI) will lead to an increase in economic growth of 0.2863 % in the GCC countries, and this is what encourages further coordination and joint cooperation among the GCC countries in the field of attracting foreign investment, especially with regard to the business environment of investment.