The Impact of Foreign Direct Investment on Economic Growth in Emerging Economies
DOI:
https://doi.org/10.47067/ramss.v8i3.550Keywords:
Foreign Direct Investment, Economic Growth, Emerging Economies, Regression Analysis, ANOVA, Demographic Analysis, Policy Frameworks, Institutional Support, Sustainable Development, GlobalizationAbstract
This research examines the impact of foreign direct investment (FDI) on the economic growth of emerging economies by studying regression results, ANOVA testing and demographic patterns. A quantitative research design was implemented, and structured questionnaires were administered to 250 respondents across Asia, Africa, and Latin America. Descriptive statistics, regression, and ANOVA were used to analyze the data and provide evidence on the relationship between FDI and growth. The demographic data containing information on gender, age and education yielded a varied sample, which in turn, provided robustness to the results. The results from the regression analysis demonstrate that FDI positively contributes to the growth of economies; countries with higher FDI inflows enjoy better economic performance. ANOVA findings showed that the impact of FDI is heterogenous across the different countries. This is due to the fact that governance, market, and institutional frameworks are important determinants of the potential gain of FDI. The discourse elaborated that FDI not only generates employment but also boosts innovation, knowledge spillovers, and productivity growth, which are especially pronounced when complemented with appropriate policies and skilled human capital. In summation, the research underscores the importance of FDI for economic growth in developing economies, but for its sustained impact, government positioning of foreign investment relative to their development goals is crucial. Follow-up research could analyze FDI by sector and invest in the potential of technology to transform investment.
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