Impacts of FDI in the economic growth in developing countries : The period 2004-2014
Abstract
The study was conducted to examine the impacts of FDI on economic growth. The data was collected from 25 developing countries over the period of 14 years from 2004 to 2014. Panel co-integration analysis is used in this paper to run the regression analysis and came up with the conclusion of a positive influence of labor, FDI and exchange rate on the economic growth. However, the trade and inflation rate have opposite of direction with economic growth. The results of this study contribute to the policies of developing countries, as it helped them to reform as well as improve the economic structure.