Impact of Foreign Direct Investment on Gross Domestic Product (A Case of SAARC Countries)

Abstract

This paper investigates the impact of foreign direct investment on Growth (GDP) of SAARC countries. This relationship is tested by applying multiple regression models. The change in GDP is taken as dependent viable while FDI and inflation are considered as independent variables. The data used for this is ranging from year 2001 to 2010 of SAARC Countries. The result shows that the overall model is significant. There is a positive and significant relationship between GDP and FDI while an insignificant relationship between GDP and inflation.