Does Foreign Direct Investment Enhance Economic Growth? Evidence from 30 Leading Global Economies

Q2 Economics, Econometrics and Finance

Global Journal of Emerging Market Economies Pub Date : 2020-05-01 DOI:10.1177/0974910120919042

A. Okwu, I. Oseni, R. Obiakor

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引用次数: 20

Abstract

Investment expenditure is a major component of aggregate macroeconomic variables in any economy, irrespective of the development status. This article employed relevant econometric methodology on panel data environment to analyze the effects of foreign direct investment (FDI) inflows on economic growth of 30 leading global economies during the period between 1998 and 2017. Other variables considered in the analysis were domestic credit to private sector (DCPS), gross fixed capital formation (GFCF), inflation–consumer prices index (INFPC), trade openness (TOPNESS), and youth unemployment (UEMPYT). The results showed mixed growth effects of the variables in general. Specifically, FDI exerted positive and significant effect on economic growth of the countries during the period. Therefore, this article concluded that FDI inflows enhanced economic growth and emphasized the need to foster more FDI-attracting policies as well as adequate GFCF to complement FDIs for sustainable economic growth potentials. JEL Classification: C23, C33, C51, F21, F43, O47.

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外国直接投资能促进经济增长吗？来自全球30个主要经济体的证据

投资支出是任何经济体总体宏观经济变量的主要组成部分，不论其发展状况如何。本文采用面板数据环境下的相关计量经济学方法，分析了1998 - 2017年外商直接投资(FDI)流入对全球30个主要经济体经济增长的影响。分析中考虑的其他变量包括国内对私营部门的信贷(DCPS)、固定资本形成总额(GFCF)、通货膨胀-消费者价格指数(INFPC)、贸易开放度(TOPNESS)和青年失业率(UEMPYT)。结果表明，总体上各变量的增长效果是混合的。具体而言，FDI对这一时期各国的经济增长产生了积极而显著的影响。因此，本文得出结论，FDI流入促进了经济增长，并强调需要制定更多吸引FDI的政策，以及充足的GFCF来补充FDI，以实现可持续的经济增长潜力。JEL分类:C23, C33, C51, F21, F43, O47。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Global Journal of Emerging Market Economies Economics, Econometrics and Finance-Economics, Econometrics and Finance (miscellaneous)

CiteScore

2.70

自引率

0.00%

发文量

期刊介绍： Global Journal of Emerging Market Economies is a peer-reviewed journal. The aim of the journal is to provide an international platform for knowledge sharing, discussion and networking on the various aspects related to emerging market economies through publications of original research. It aims to make available basic reference material for policy-makers, business executives and researchers interested in issues of fundamental importance to the economic prospects and performance of emerging market economies. The topics for discussion are related to the following general categories: D. Microeconomics E. Macroeconomics and Monetary Economics F. International Economics G. Financial Economics H. Public Economics I. Health, Education, and Welfare J. Labor and Demographic Economics L. Industrial Organization O. Economic Development, Innovation, Technological Change, and Growth Q. Agricultural and Natural Resource Economics • Environmental and Ecological Economics R. Urban, Rural, Regional, Real Estate, and Transportation Economics Additionally, the journal would be most interested to publish topics related to Global Financial Crisis and the Impact on Emerging Market Economies Economic Development and Inclusive Growth Climate Change and Energy Infrastructure Development and Public Private Partnerships Capital Flows to and from Emerging Market Economies Regional Cooperation Trade and Investment and Development of National and Regional Financial Markets The Belt and Road Initiative.