Date of Award
4-8-2013
Document Type
Thesis
First Advisor
Advisor: Kellin Stanfield
Abstract
My thesis paper examines whether or not foreign direct investment promotes economic growth in the host country. Looking into a prior study, by Li and Liu (2005), they found that FDI does spur growth; however, there has been contrasting studies that show that FDI has a negative effect on host country’s growth. I argue that, after researching conflicting arguments, foreign direct investment is correlated to positive economic growth. My econometric model takes a panel data set from 82 different countries from 1970-2011. The growth model concludes that FDI does promote positive economic growth. This is significant because it confirms my hypothesis.
Recommended Citation
Tolley, Mark '13, "The Effect of Foreign Direct Investment on Economic Growth and Its Implications" (2013). Honor Scholar Theses. 295, Scholarly and Creative Work from DePauw University.
https://scholarship.depauw.edu/studentresearch/295