2.0 LITERATURE REVIEW
2.1 FDI inflows with Economic Growth
In the early 1960s, scholars have noted the impact of foreign direct investment (MacDougall, 1960) for the general welfare , early contribution to the study of the spillover effect of foreign direct investment( spillover effects of FDI refers to the positive externalities of foreign direct investment in addition to a direct role than generated .) , including foreign direct investment also tariff policy as well as the host country the role of industry, etc. (Caves, 1971). In these early studies, although foreign direct investment on productivity externalities with foreign direct investment, such as the effect of government revenue, tax policy, trade, balance of payments, etc. are discussed together, but empirical analysis has shown multinational access to improve the efficiency of the local economy has a positive effect. In …show more content…
In the same view is included Koldy [1995] who applies Granger causality test on 10 economies from Eastern Asia. The negative connection is also demonstrated by Lipsey and Sjoholm [2005, p: 297] noted that “there is no universal relation between the ratio of FDI inflows in GDP and the national growth …show more content…
FDI inflow can bring the not only the technological benefits to the host countries in imports of modern technologies, But also in education and training the
2.1 FDI inflows with Economic Growth
In the early 1960s, scholars have noted the impact of foreign direct investment (MacDougall, 1960) for the general welfare , early contribution to the study of the spillover effect of foreign direct investment( spillover effects of FDI refers to the positive externalities of foreign direct investment in addition to a direct role than generated .) , including foreign direct investment also tariff policy as well as the host country the role of industry, etc. (Caves, 1971). In these early studies, although foreign direct investment on productivity externalities with foreign direct investment, such as the effect of government revenue, tax policy, trade, balance of payments, etc. are discussed together, but empirical analysis has shown multinational access to improve the efficiency of the local economy has a positive effect. In …show more content…
In the same view is included Koldy [1995] who applies Granger causality test on 10 economies from Eastern Asia. The negative connection is also demonstrated by Lipsey and Sjoholm [2005, p: 297] noted that “there is no universal relation between the ratio of FDI inflows in GDP and the national growth …show more content…
FDI inflow can bring the not only the technological benefits to the host countries in imports of modern technologies, But also in education and training the