The focus of this research is examining the affects of foreign direct investment on economic growth. Then the research reached this question: How Does Foreign Direct Investment Effects On Host Country’s GDP (Economic Growth)? Firstly, research starting with discussing the potential of FDI to affect host country’s economic growth and argues that two important objectes for FDI affects on economic growth, inflows of physical capital and technology spillovers, and according to research the technology spillovers have the stronger effect to enhance economic growth in the host country. Using cross section analysis with the range of ten years the empirical part of the paper reached a conclusion that FDI inflows improve economic growth in developing economies but not in developed economies as much as developing economies.
The research examine the effects of foreign direct invetsments on GDP growth in host country. The role which foreign direct investment (FDI) plays in the growth process in the source of developing countries characterised by differing trade policy regimes. This study is using cross-section data relating to a sample of thirty developing countries, and twenty developed countries, according to which the beneficial effect of FDI.
The aim of the paper is to analyse that FDI inflows have a positive effect on host country economic growth. When I examine the previous paper, I conclude mixed results so this paper includes the mixed results of earlier research and most of them finding that FDI inflows have a positive effect on host country economic growth in developing but not in developed economies.
Also, this paper is trying to analyze technology spillovers from MNEs( Multinational Enterprises) to domestic firms and physical capital of host country. Aim is trying to understand which one provide the most important connection for a positive effect from FDI on economic growth.
2.1. The Importance of MNEs and Technology Spillovers... [continues]
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