Volume 4 , Issue 2 , PP: 62-68, 2024 | Cite this article as | XML | Html | PDF
Zebo Kuldasheva 1 *
This paper investigates the relationship between foreign direct investment and economic growth in Belt and Road countries during 1990-2020. Our findings suggest that a 10% increase in FDI relative to GDP is associated with only 0.9 percentage points increase in GDP growth. The results are held after including control variables. The results can be explained based on the facts that forces investors and companies to invest their money in foreign projects including relatively lower cost of deployment, the access to resources, favorable financial environment and developed financial markets. These elements collectively shape the impact of FDI on economic growth in the Belt and Road countries. Future research on the FDI-growth nexus in Belt and Road countries should concentrate on causal links and potential indirect pathways by which FDI can influence economic growth.
Foreign Direct Investment , Economic Sustainability , Belt and Road initiative
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