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Open Access Journal Article

Impact of Foreign Direct Investment on Economic Growth

by Emma Johnson 1,*
1
Emma Johnson
*
Author to whom correspondence should be addressed.
EFRL  2022 4(2):32; https://doi.org/10.69610/j.efrl.20220926
Received: 21 July 2022 / Accepted: 30 August 2022 / Published Online: 26 September 2022
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Abstract

This paper examines the impact of Foreign Direct Investment (FDI) on economic growth, focusing on the role of FDI in fostering development and the potential challenges it presents for host economies. By analyzing various empirical studies, it aims to provide insights into the mechanisms through which FDI influences economic growth, including the creation of jobs, technology transfer, and the improvement of infrastructure. The paper argues that while FDI can stimulate economic growth by introducing capital, technology, and know-how, it also poses risks such as market distortions and dependency on foreign capital. The analysis suggests that the positive effects of FDI are contingent upon the host country's policies, institutions, and the level of investment. Moreover, it highlights the importance of sustainable development and the need for proper governance to maximize the benefits of FDI while mitigating its risks.

Keywords: Foreign Direct Investment; Economic Growth; Development; Technology Transfer; Host Country Policies.;
Copyright: © 2022 by Johnson. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
Cite This Paper
APA Style
Johnson, E. (2022). Impact of Foreign Direct Investment on Economic Growth. Economics and Finance Research Letters, 4(2), 32. doi:10.69610/j.efrl.20220926
ACS Style
Johnson, E. Impact of Foreign Direct Investment on Economic Growth. Economics and Finance Research Letters, 2022, 4, 32. doi:10.69610/j.efrl.20220926
AMA Style
Johnson E. Impact of Foreign Direct Investment on Economic Growth. Economics and Finance Research Letters; 2022, 4(2):32. doi:10.69610/j.efrl.20220926
Chicago/Turabian Style
Johnson, Emma 2022. "Impact of Foreign Direct Investment on Economic Growth" Economics and Finance Research Letters 4, no.2:32. doi:10.69610/j.efrl.20220926

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ACS Style
Johnson, E. Impact of Foreign Direct Investment on Economic Growth. Economics and Finance Research Letters, 2022, 4, 32. doi:10.69610/j.efrl.20220926
AMA Style
Johnson E. Impact of Foreign Direct Investment on Economic Growth. Economics and Finance Research Letters; 2022, 4(2):32. doi:10.69610/j.efrl.20220926
Chicago/Turabian Style
Johnson, Emma 2022. "Impact of Foreign Direct Investment on Economic Growth" Economics and Finance Research Letters 4, no.2:32. doi:10.69610/j.efrl.20220926
APA style
Johnson, E. (2022). Impact of Foreign Direct Investment on Economic Growth. Economics and Finance Research Letters, 4(2), 32. doi:10.69610/j.efrl.20220926

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