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FDI and Economic Growth : An Empirical Study of Lower-middle Income Economies / FDI och Ekonomisk tillväxt : En empirisk studie av lägre medelinkomstekonomier

Within a panel data context with fixed effects method, using data on a sample of 40 lower- middle income economies, this paper investigates whether and to what extent FDI stimulates economic growth over the period 2007-2017. The main finding of this paper highlights the complementary effects between FDI and education, suggesting that a certain level of education must be reached in order for FDI to contribute positively on economic growth. Further, the level of education in this sample set is below the level that is considered as adequate in order to spur economic growth and thus this affects the absorptive capacity. This paper can only confirm that there is a certain association between FDI and economic growth and cannot confirm the widespread belief that FDI stimulates economic growth due to that the estimated models more often than not provided insignificant results.

Identiferoai:union.ndltd.org:UPSALLA1/oai:DiVA.org:hj-44025
Date January 2019
CreatorsNgo Ngoc, Qui
PublisherHögskolan i Jönköping, Internationella Handelshögskolan
Source SetsDiVA Archive at Upsalla University
LanguageEnglish
Detected LanguageEnglish
TypeStudent thesis, info:eu-repo/semantics/bachelorThesis, text
Formatapplication/pdf
Rightsinfo:eu-repo/semantics/openAccess

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