research paper on fdi and economic growth

objective by increasing profits through numbers of advantage such as control over local market, low cost of labour. Ayanwale AB (2007) FDI and economic growth: Evidence from Nigeria, Edited by aerc Research Paper 165,African Economic Research Consortium. Int J Econ Manag Sci 4:224. These factors are including, lack of world class ports, airports, road. FDI and gfcf play a very crucial role in its future growth and development. That can be seen through comparing the critical value with the ADF value, when the critical value is greater that ADF value meaning that the variable is not stationary. Economics reform Economic reformation refers to the transformation of property from less productive to more productive sectors of the economy. The model is overall significant with the positive and significant relationship of GDP, FDI and gfcf (divya). Interpretation of OLS result The empirical results are presented by the above table.

Result also indicate a good fit for the model with R285. To examine the relation of Mauritanias GDP mba hr dissertation project report with FDI and gfcf, the following multiple regression model is used, GDP 1 FDI 2gfcf (2) Where, FDI Foreign Direct Investment GDP Gross Domestic Product gfcf Gross Fix Capital Formation Level of Significant: 5 to 10 percent Method. The pivotal effect of FDI inflow on economic growth encompass, an increase in aggregate productivity, an increase opportunities of employment, a greater outflow of export, and finally exchange technology advancement between investor and the country. The minimum value of real GDP was.8 Million US, while the maximum value was.9 Million US ( Figure 1 ). Developing countries undertake some macroeconomic reforms to ensure investor-friendly environment. Political instability generates economic insecurity because of turn down in investment. The findings reported that FDI influence economic growth positively to limited human capital. The model examines long run relationship between the variables and found absence of long run relationship between FDI and economic growth.

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