IDEAS home Printed from
   My bibliography  Save this article

Foreign Direct Investment and Economic Growth: Evidence from Asian Selected Countries


  • Sheida Soleimani

    () (Department of Economics of Shiraz University)

  • Mehdi Behname

    (Department of Economics of Ferdowsi University of Mashhad (FUM))


The purpose of this paper is to investigate the influence of foreign direct investment (FDI) on economic growth in Asian countries for the years 1980-2010. The IPS unit root test indicates that variables are stationary in level and Hausman test proves that we should apply the random effects model. Having estimated the model we come to the conclusion that FDI has positive and significant effect on economic growth and variables such as human capital, economic infrastructure and capital formation have positive effect on GDP. However, population, technology gap and inflation have negative effect on the economic growth.

Suggested Citation

  • Sheida Soleimani & Mehdi Behname, 2012. "Foreign Direct Investment and Economic Growth: Evidence from Asian Selected Countries," Economic Analysis, Institute of Economic Sciences, vol. 45(3-4), pages 67-74.
  • Handle: RePEc:ibg:eajour:v:45:y:2012:i:3-4:p:67-74

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. António Portugal Duarte & João Sousa Andrade, 2012. "How the Gold Standard functioned in Portugal: an analysis of some macroeconomic aspects," Applied Economics, Taylor & Francis Journals, vol. 44(5), pages 617-629, February.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. repec:gei:jnlfer:v:2:y:2017:i:1:p:40-55 is not listed on IDEAS

    More about this item


    Foreign direct investment; economic growth; Asia; panel data;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ibg:eajour:v:45:y:2012:i:3-4:p:67-74. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zorica Bozic). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.