Analyzing the effect of foreign direct investment on economic growth in developing countries

Subject Areas :

Mahnaz Rabiei ¹ , Maryam Behifar ² , Ghasem Azadi Ahmadabadi ³

1 - Assistant Professor, Islamic Azad University, Tehran Branch, South Tehran, Iran
2 - Student of Technology Management, Islamic Azad University, Science and Research Branch, Tehran, Iran
3 - Assistant Professor, National Research Institute for Science Policy, Tehran, Iran.

Received: 2022-02-11 Accepted : 2022-03-10 Published : 2021-09-23

Keywords: GDP, investment, Foreign Direct Investment, . Economic Growth, Panel Data. Developing countries,

Abstract :

In many developing countries, faced with the need to promote and strengthen the economy's long-term access to new technology, management know-how in many cases significantly associated with lack of resources, have floundered. Strengthen the local economy with a potential role in the shortage of foreign direct investment on economic growth in these countries is long-term. Therefore, this article tries to account 17 during the period 1990 to 2019 to analyze the impact of developing country foreign direct investment on economic growth in these countries will be discussed.In this study, the effect of labor variables, gross domestic fixed capital formation, the rate of economic openness and foreign direct investment on economic growth is estimated to selected countries.Also, although initially positive effect of FDI on economic growth, but this effect was reversed a year break and have a negative impact on the economy, which could be due to leakage of finance, technology, communications, human resources and vulnerability to be closed.