अमूर्त

Foreign Direct Investment Impact on Economic Indicators of the SAARC Countries

Nithya S M, Kavitha H

Investments made by one company in another based in another country are Foreign Direct Investments (FDI). In open markets, rather than closed markets for investors, FDIs are actively used. The FDI types are horizontal, vertical, and conglomerate. In another country, Horizontal establishes the same type of business, while vertical is related but differentiated, and conglomerate is an unrelated company. FDI promotes technology transfer, enhances competition in the domestic input market, leads to the growth of human resources, and FDI-generated income add to corporate tax collections in the host country. FDI is one of the essential factors for economic growth of the country. This paper aims to study the influence of Foreign Direct Investment on the Economic Indicators of the SAARC Countries. Data analysis is conducted using the approach of Panel Data Analysis. The tools/software used for analysis are Eview11 Software and MS Excel. FDI is considered as independent factor and GDP, Population, Unemployment, Imports and Exports.