“FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH: AN EMPIRICAL ANALYSIS”

“FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH: AN EMPIRICAL ANALYSIS”

T.VEDA MOUNIKA, TEJASWINI P V, UMESH MOHAN, VEDANT SAXENA, VIPIN DIVAKAR, SHREYA JAIN, SRIJAL TATER, SRIRAKSHA S BHAT, SRIVISHNU S
Post-Graduate Students – MBA, Faculty of Management Studies, CMS Business School,

Jain Deemed to be University, Bengaluru – 560009

ABSTRACT:
In an ever more interconnected global landscape, Foreign Direct Investment (FDI) is a pivotal catalyst for driving economic expansion and progress. This research paper conducts a comprehensive empirical examination of the complex interplay between FDI inflows and the economic advancement of host nations. The study seeks to reveal the fundamental mechanisms of the relationship between FDI and growth, considering both neoclassical and endogenous growth theories. It further applies advanced econometric techniques to assess how FDI impacts key economic indicators, such as GDP growth, employment, technological advancement, and income distribution. Additionally, this research delves into the policy implications of FDI and addresses potential challenges associated with its influx. It explores the roles of government policies, regulatory frameworks, and potential trade-offs, emphasizing the importance of a balanced approach that harnesses the benefits of FDI while also tackling issues like income inequality, environmental sustainability, and financial stability. Ultimately, this study offers valuable insights for policymakers and researchers, fostering a nuanced understanding of how FDI can serve as a driver for sustainable economic growth within our complex and interlinked global landscape.

Keywords: Economic growth, government policies, trade openness, regulatory environments, income inequality, sustainability, policy implications, globalization.