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Asian Journal of Research in Business Economics and Management
Year : 2015, Volume : 5, Issue : 3
First page : ( 305) Last page : ( 318)
Online ISSN : 2249-7307.
Article DOI : 10.5958/2249-7307.2015.00079.1

Effect of Foreign Direct Investment (FDI) on Economic Growth of Selected Host Countries

Monjazeb Mohammad Rezaa, Mottaghi Hamid Reza Koochakib, Ranjbar Fardinc, Babaeiphilehrood Mohammad Hosseinc,*

aFaculty Member, University of Economic Sciences, Tehran, Iran

bMA of Economic, Islamic Azad University, Tehran, Iran

cMaster Student, University of Economic Sciences, Tehran, Iran

*Corresponding author

Online published on 10 March, 2015.

Abstract

Foreign direct investment is an important factor in resolving the gap between savings and capital, removing the trade gap, technology transfer, technical knowledge and new management methods, and Finally the improvement of productivity. Among the other attributes of this kind of investment, the acceptance of financial responsibility, accepting the risks of Profit and loss, flexibility and compatibility, and control and management of manufacturing units can be mentioned. Therefore, in the present study, the impact of foreign direct investment on economic growth of host countries is considered.

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Keywords

Economic growth, foreign direct investment.

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