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Impact of Foreign Direct Investment on Economic Growth: An Evidence from EAGLEs
Globalization has led to greater mobility of capital. The greater access to capital impact the economic growth through higher investment rates and better technology which can be accrued through FDI. Over the last decade, trade and capital flows within and among emerging regions has increased significantly. Emerging markets are expected to contribute 79% towards global growth between 2015 and 2025, with EAGLEs contributing up to 64%. The objective of this study is to empirically investigate the linkages between FDI and economic growth for EAGLEs (Emerging and Growth Leading Economies) over the last ten years. This study has taken into consideration annual FDI inflow and annual growth percentage of Gross Domestic Product (GDP) as a proxy for economic growth for EAGLEs from 2008 to 2017. The results of the study based on time-series framework suggest that most of the countries falling under the facets of EAGLEs have strong long-run inter-linkages between FDI Inflow and Economic Growth.
Economic Growth, FDI, GDP, EAGLEs, Co Integration.
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