Impact of Foreign Direct Investment on Economic Growth

Abstract

Foreign direct investment plays an important part in developing countries’ economic development. Improving the international economic transactions has become more critical than trade. Non-debt generating capital inflow from foreign investors encourages enhanced efficiency, technology development, and infrastructure strengthening and job creation opportunities. Therefore every economy seeks to attract FDI by establishing a favorable environment for foreign investment and providing the foreign investors with facilities and inducements. Increasing socio-economic determinants in an economy affect FDI. In this paper an attempt has made to study the impact of FDI on Gross domestic product, gross domestic saving, per capita income and Foreign exchange rate by using bivariate log-log regression.