Foreign Direct Investment and Economic growth in Member Countries of Asia Pacific Trade Agreement
A. Muthusamy1, Raghuveer Negi2
1Dr. A. Muthusamy, Professor, Department of International Business, Alagappa University, Karaikudi (Tamil Nadu), India.
2Raghuveer Negi, Full-Time Research Scholar, Department of International Business, Alagappa University, Karaikudi (Tamil Nadu), India.
Manuscript received on 17 September 2019 | Revised Manuscript received on 04 October 2019 | Manuscript Published on 11 October 2019 | PP: 145-155 | Volume-8 Issue-2S10 September 2019 | Retrieval Number: B10240982S1019/2019©BEIESP | DOI: 10.35940/ijrte.B1024.0982S1019
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: The economic growth depicts prosperity and self sustainability of nation. Foreign Direct Investment considered as handful tool for growth of host nation is a general perception all over the globe. Now due to global webbed market, countries worldwide are anxious to exploit Asia-Pacific’s huge market and rich culture. The empirical evidence and fact-based case study poses FDI and economic growth on fringe due to variation in during the different span of time. This study attempted to analyze the relationship between FDI and economic growth into Bangladesh, China, India, Lao PDR, Mongolia, Korea Republic and Sri Lanka. It is assumed that blend of developed, emerging and developing economies taking as base for comparison will derive the more satisfactory result. Also, it consists of large market driven economies in the world due to strong market base. To attain the result of GDP growth, Inflation rate and Unemployment rate has taken as economic growth indicator. The Ordinary Least Squares, Augmented Dicky-Fuller and Granger Causality test is used to estimate the effect of FDI on economic growth. The result shows that in spite of consistent pattern in FDI inflow not all the countries have experienced the significant effect of FDI on economic growth of nation. The implications in nation’s policies are discussed in the study.
Keywords: FDI, Economic Growth, GDP, Inflation, Unemployment, OLS, ADF, Granger Causality.
Scope of the Article: Social Sciences