Analyzing Role Of Foreign Direct Investment In Economic Development In South Asian Countries

Abstract

FDI, or foreign direct investment, is essential to growing the economy of emerging nations. Therefore, understanding the variables that impact FDI flows into developing nations is essential. The goal of this research was to find out what influences foreign direct investment influx into South Asian nations. This study has taken into consideration seven countries and gathered data on the relevant variables for 45 years in order to achieve its goal. A variety of panel models, including the basic pooling OLS estimation, entity fixed effect model, temporal fixed effect model, and random effect model, have been used to investigate the link between key economic variables and their overall impact on FDI inflows. The study's conclusion is that the primary driver of foreign direct investment (FDI) inflows into South Asian nations is the nation's GDP.