Journal Press India^®

Author Details ( * ) denotes Corresponding author

Purpose: The present research attempts the reasons for the dependence of the LDCs on Foreign Direct Investment in order to stimulate their growth. Design/Methodology/Approach: For the assessment of the financial results, the researcher has used an autoregressive approach to forecast the FDI inflows. Findings: The main conclusion of the research is that the interrelations among the variables FDI, GDP, exports, and imports of the four countries China, India, Malaysia, and Singapore are explored in this paper. The primary technique used in the study is panel data analysis. Through an empirical test, the breakpoints that signify structural changes in the four economies are identified. Research Limitations: The main limitation of the study was that the data pertaining to only 4 Asian Countries was taken which does not properly reflect the Foreign Direct Investment and growth. Managerial Implications: The implication of the research is that the host countries may create a very favorable environment for FDI, but the MNCs may still take their money elsewhere because of higher returns. Originality/Value: This study showcased the original work of the authors in the field of to understand how FDI has a positive impact on the GDP of the host country.

Keywords

Foreign Direct Investment (FDI), Exports, Imports, Panel Data Analysis, China, India, Malaysia, Singapore.

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