Economic impacts of FDI inflows: A literature review
Keywords:
FDI inflows, macroeconomic variablesAbstract
FDI inflows have been raised considerably during the past four decades and had many economic, social, and institutional effects in all the countries. This study researched the relevant empirical literature on the economic effects of FDI inflows in various countries. We revealed that FDI inflows had significant effect on economic growth, unemployment, financial sector development, tax revenues, and environment.
References
Abzari, M., Zarei, F., Esfahani, S.S. (2011). Analyzing the link between financial development and foreign direct investment among D-8 group of countries. International Journal of Economics and Finance, 3(6), 148-156.
Acharyya, J. (2009). FDI, growth and the environment: Evidence from India on CO2 emission during the last two decades. Journal of Economic Development, 34(1), 43-58.
Anwar, S., Nguyen, L. P. (2010) “Absorptive capacity, foreign direct investment-linked spillovers and economic growth in Vietnam”, Asian Business & Management, Vol. 9, No. 4, pp. 553–570, doi: 10.1057/abm.2010.28.
Bayar, Y., Ozturk, O.F. (2014). Impact of Foreign Direct Investment Inflows on Tax Revenues in OECD Countries: A Panel Cointegration and Causality Analysis. Theoretical and Applied Economics, 25(1). 31-40
Bayar, Y. (2014), “Effects of Economic Growth, Export and Foreign Direct Investment Inflows on Unemployment in Turkey”, Investment Management and Financial Innovations, 11(2), 20-27.
Berger, M. and Diez, J.R. (2008). ‘Can host innovation systems in late industrializing countries benefit from the presence of transnational corporations? Insights from Thailand’s manufacturing industry’, European Planning Studies, vol. 16, no. 8, pp. 1047-1074.
Bhattarai, K. (2016), “FDI and Growth”, Advances in Management & Applied Economics, 6(2), 1-23.
Blanco, L., Gonzalez, F., Ruiz, I. (2013). The impact of FDI on CO2 emissions in Latin America. Oxford Development Studies, 41(1), 104–121.
Bunescu, L., Comaniciu, C. (2014). Analysis of Correlation Between Tax Revenue and Other Economic Indicators in European Union member States. Studies in Business & Economics, 9(1).
Desbordes, R., Wei, S.J. (2014). The Effects of Financial Development on Foreign Direct Investment, World Bank Group Policy Research Working Paper 7065
Djambaska, E., Lozanoska, A. (2015), “Foreign Direct Investment and Unemployment: Evidence from the Republic of Macedonia”, International Journal of Economics, Commerce and Management United Kingdom, 3(12), 73-85.
Gebrehiwot, A., Esfahani, N., Sayin, M. (2016). The relationship between FDI and financial sector development: The case of sub-Saharan African region. International Journal of Regional Development, 3(1), 64-80.
Kurtovic, S., Siljkovic, B., Milanovic, M. (2015), “Long-term Impact of Foreign Direct Investment on Reduction of Unemployment: Panel Data Analysis of the Western Balkans Countries”, Journal of Applied Economics and Business Research, 5(2), 112-129.
Loukil, K. (2016). Foreign Direct Investment and Technological Innovation in Developing Countries. Oradea Journal of Business and Economics, 1(2), 31-40.
Mahmood, H., Chaudhary, A. R. (2013). Impact of FDI on tax revenue in Pakistan. Pakistan Journal of Commerce and Social Sciences, 7(1), 59-69.
Mahmood, H., Chaudhary, A.R. (2012). FDI, population density and carbon dioxide emissions: A case study of Pakistan. Iranica Journal of Energy & Environment, 3(4), 354-360.
Neelakanta, N.T., Gundimeda, H., Kathuria, V. (2014). Foreign direct investment, pollution and economic growth in India: Testing using ARDL approach. The Empirical Economics Letters, 13(3), 317-326.
Neuhaus, M. (2006) The Impact of FDI on Economic Growth: An Analysis for the Transition Countries Of Central And Eastern Europe, Berlin: Springer Science & Business Media.
Shaari, M.S., Hussain, N.E., Abdullah, H., Kamil, S. (2014). Relationship among foreign direct investment, economic growth and CO2 emission: A panel data analysis. International Journal of Energy Economics and Policy, 4(4), 706-715.
Sinani, E. and Klaus M. (2004). ‘Spillovers of Technology Transfer from FDI: The Case of Estonia’, Journal of Comparative Economics, 32, 445–66.
World Bank (2019). Foreign direct investment, net inflows (BoP, current US$), https://data.worldbank.org/indicator/bx.klt.dinv.cd.wd (20.03.2019)
Yucel, G.E. (2014), “FDI and Economic Growth: The Case of Baltic Countries”, Research in World Economy, 5(2), 115-134.
Zeb, N., Qiang, F., Sharif, M.S.(2014), “Foreign Direct Investment and Unemployment Reduction in Pakistan”, International Journal of Economics and Research, 5(2), 10-17.
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Yılmaz Bayar , Ayse Gul Ozogul (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.