Impact of direct foreign investment in the growth of the economy

Abstract

Economic growth is the most observable economic indicator, which is characterized by real GDP growth. The main reasons for the growth of this process are technological advances, the improvement of the level and quality of education, and foreign direct investment. Foreign direct investment (next as FDI) is one of the main macroeconomic indicators of the country. Foreign direct investment involves a continuous expansion of the country and increasing productivity, especially in expanding markets. FDI creates direct and more detailed relations between countries, promotes economic development. Therefore, competition in attracting investment is growing at a very fast pace in the world: the state seeks to highlight the advantages of the country and apply various incentives for foreign investors. Foreign direct investment is one of the main macroeconomic indicators of the country, as well as the importance of investments in the modern world has grown rapidly. FDI is the engine of economic growth, replacing trade, which creates direct and deeper relations between countries, promotes economic development. The purpose of the study is to assess the influence of countries on foreign direct investment, based on literature: scientific articles, scientific books and statistical data. Methods used for the research: Regression analysis, correlation, hypothesis, analysis of scientific articles, comparative analysis.