چکیده:
the impact of FDI on economic growth is neither homogeneous, nor completely clarified. Due to accumulation of capital in the host economy, FDI is expected to encourage the incorporation of new inputs and technologies in the process of production. However, the impact of FDI on economic growth is not so shaped up in empirical studies. Accordingly, while some studies remarked a positive impact of FDI on economic growth, others showed a negative relationship between the two variables. In this paper, we will analyze absorb methods of foreign investment, effective factors in foreign direct investment (including economic, encouragement and protection, and natural and politic factors), and connection between foreign direct investment and growth. We carried out an analysis of vector autoregressive (VAR) type, so as to identify the relationship between FDI and economic growth in Iran over the period 1991–2014. Result shows that economic growth and foreign direct investment have a positive impact on each other; hence there is a reciprocal relationship between them. Also, Granger causality test for GDP growth and foreign direct investment indicate that a reciprocal relationship exists between these two variables.
خلاصه ماشینی:
Rana and Dowling (1998), Dornean and Oanea (2013), point out that the positive effect of FDI on economic growth can be achieved due to capital efficiency increase as a result of proper and advanced technology transfer.
In this section, we briefly review some studies and present their results: Ahmadi and Ghanbarzadeh (2011) study the impact of openness and FDI on economic growth in Iran over the period 1970–2008, using the Bounds testing approach suggested by Pesaran et al.
In addition, studying the econometric models show that national income, GDP, government expenses, inflation rate, degree of economic openness, human capital, and FDI have positive effect on total private investments in Iran.
GDP Growth Determinants and Foreign Direct Investment Causality: The Case of Iran,The Journal of International Trade Economic Development , 25(6).
Table 1: Introduce Variables Variables and Symbol Sources Units and Expression Used GRO: Economic Growth WDI GDP growth FDI: Foreign Direct Investment UNCTAD Net inflows HC: Human Capital WDI K: Total number of pupils enrolled at secondary level Capital Formation WDI Domestic capital accumulation W: Wage Rate OP: Central Bank of Iran Nominal wage index Sum of exports and imports in Openness WDI ER: Exchange Rate WDI L: goods and services over GDP Real exchange rate: The nominal exchange rate × internal Prices / external prices Labor Force WDI Labor force, total E: Growth Rate of Value Added WDI Gross value added at factor cost <H4>4.
The Impact of Foreign Direct Investment on Capital Formation, Productivity and Economic Growth in Developing Countries.