THE IMPACT OF FOREGIN DIRECT INVESTMENT IN EMERGING MARKETS

Abstract

Foreign direct investment (FDI) has become an important source of funding for emerging countries as a result of effective economic reflection. This study examined the impact of FDI on emerging markets. The impact of FDI in emerging markets is different from country to country depending on the factors of each country.  In this study, sample data from year 1991-2018 for 7 emerging countries was used to estimate the statistical significance of the relation between the FDI and GDP the economic growth. The seven countries are Saudi Arabia, Brazil, China, Egypt, India, Australia, and Kenya. In this work, the analysis was done based on five variables, which are gross domestic product (GDP), are foreign direct investment (FDI), labor force (LF), trade openness (TO) and employment. The data used for this work was attained from World Bank. The results of the study have shown that FDI does not have a significant impact on some emerging countries. Moreover, the result of having insignificant effects for Saudi Arabia is due to being new to the involvement of FDI.

CCS Concepts

• Information systems➝Database management system engines   • Computing methodologies➝Massively parallel and high-performance simulations.