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Research objective

1. To review the existing research on the influence of FDI inflows on economic growth.

2. To use the right model to find out how two variables are correlated.

3. To use an empirical model that may be used to assess the impact of FDI in emerging economies and offer conclusions for policy and future research.



Reference list

Alfaro L., Chanda A., Kalemli-Ozcan S. & Sayek S. (2004), “FDI and Economic Growth: The Role of Local Financial Markets”, Journal of International Economics, No. 64, pp. 89-112.

Baharumshan, A. and Thanoon, M. (2006). Foreign capital flows and economic growth in East Asian countries. China Economic Review, 17(1), pp.70-83

Balasubramanyam V. N., Salisu M. and Sapsford D. (1996), “Foreign Direct Investment and Growth in EP and IS Countries”, The Economic Journal, No. 106, pp. 92-105.

Basu P., Chakraborty C. & Reagle D. (2003), "Liberalization, FDI and Growth in Developing Countries: A Panel Cointegration Approach", Economic Inquiry, Vol. 14, No. 3, pp. 510-516.

Borensztein E., De Gregorio J. & Lee J.-W. (1998), “How does foreign direct investment affect economic growth?”, Journal of International Economics, No. 45, pp. 115-135.

Carkovic, M. & Levine, R. (2005), “Does foreign direct investment accelerate economic growth?”, in: Moran T. H. , Graham E. M. & Blomstrom M. (ed.), Does Foreign Direct Investment Promote Development?, Institute for International Economics, Washington, pp. 195-220.

Choe J. I. (2003), “Do Foreign Direct Investment and Gross Domestic Investment Promote Economic Growth?”, Review of Development Economics, No. 7 (1), pp. 44-57.

Chowdhury A. & Mavrotas G. (2005), “FDI and Growth: A Causal Relationship”, World Institute for Development Economics Research, Research Paper No. 2005/25, United Nations University.

Data.worldbank.org (2021). Countries | Data. [online] Available at: https://data.worldbank.org/country [Accessed 20.12.2021].

De Mello L. R. (1999), « Foreign direct investment-led growth: evidence from time series and panel data”, Oxford Economic Papers, No. 51, pp. 133-151.
Hansen H. & Rand J. (2006), “On the Causal Links Between FDI and Growth in Developing Countries”, The World Economy, Vol. 29, No. 1, pp. 21-41.

Herzer D., Klasen S. & Nowak-Lehmann D. (2006), "In Search of FDI-Led Growth in Developing Countries", Ibero-America Institute for Economic Research Discussion Papers, No. 150, Goettingen, Germany.



İsmail Çeviş and Burak Çamurdan, (200), The Economic Determinants of Foreign Direct Investment in Developing Countries and Transition Economies, Journal article, Available from: < http://www.jstor.org/stable/41261160>, Accessed: November 2, 2021.

Lee, J. and Barro, R. (2001). Schooling Quality in a Cross-Section of Countries. Economica, 68(272), pp.465-488.


Nair-Reichert U. & Weinhold D. (2000), "Causality Tests for Cross-Country Panels: New Look at FDI and Economic Growth in Developing Countries", unpublished manuscript, Georgia Institute of Technology and London School of Economics.

Omran M. & Bolbol A. (2003), “Foreign Direct Investment, Financial Development, and Economic Growth: Evidence from the Arab Countries”,Review of Middle East Economics and Finance, Vol. 1, No. 3, pp. 231-249.

Padma Mallampally and Karl P. Sauvant (1999) Foreign direct investment in developing countries, Available from: , Accessed: November 13, 2021.

Pindyck R. S. & Rubinfeld D. L. (1998), Econometric Models and Economic Forecasts, McGraw-Hill International Edition, 4th edition, Singapore.



Zhang K. H. (2001), « Does Foreign Direct Investment Promote Economic Growth? Evidence from East Asia and Latin America”, Contemporary Economic Policy, No 19 (2), pp. 175-185.








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