Research Paper on FDI and Economic Growth

Foreign Direct Investment and economic growth are closely connected terms, because the introduction of the foreign capital into the economics of the country makes it develop faster and more effectively. Foreign direct investment is the investment of the firms and companies which are located in the developing countries with the purpose to receive enormous profit. For more than quarter of century the developed countries have been investing into the industry of the developing countries in order to solve a few problems simultaneously: to gain benefit and to help the poor countries on their process of development defeating poverty and social inequality. Foreign direct investment is the essential and extremely important help which is required by the developing countries which have the definite potential for development but do not have the starting capital and motivation.

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For example, if the country is rich on resources but can not mine and use them wisely, the foreign capital is the best way out. The country develops its industry and economics and returns the debt to the investor. Furthermore, very often the investor companies become the owners of the foreign business achieving even higher profit that planned. Foreign direct investment is helpful for one more reason: due to the investment numerous plants and factories are opened, which creates new workplaces and solves the problem of unemployment increasing the economic growth of the developing country. So, the processes of foreign direct investment and economic growth are interconnected and contribute into one another.

FDI and economic growth is the interesting topic for the investigation and a student should know about these processes much. A successful FDI and economic growth research paper is supposed to explain the meaning of the topic, analyze the types of FDI, its value for the economic growth and relate these two terms professionally. The student can analyze the problem of economic growth on the basis of the direct examples which prove that FDI really increases the growth of economics. One should find out the advantages and disadvantages of FDI and conclude the paper sensibly sharing the methods and literature review used for the research with the professor.

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