The Impact of Foreign Direct Investment and Export on Gross Domestic Products in Developing Countries

Scientific Study from the year 2020 in the subject Business economics - Investment and Finance, , language: English, abstract: This paper aims to investigate the relationship between foreign direct investment (FDI), export (EXP) and gross domestic product (GDP). The impact of interaction between EXP and FDI on GDP was also examined. For this purpose, quantitative approach was adopted. Secondary data for 49 countries whose gross national income per capita was less than 6 000 $ were collected. Spearman correlation, robust regression and causal mediation analysis were performed. Spearman correlation showed very strong correlation among GDP-FDI-EXP. Robust regression indicated that all regression coefficients are statistically significant indicating a positive moderation effect of the interaction between EXP and FDI on GDP. Causal mediation effect indicated that average causal mediated effect is statistically significant while average direct effect is not statistically significant, indicating full mediation. The effect of FDI on GDP is transmitted to GDP through increasing EXP. The effect of the interaction of FDI and GDI was found statistically significant. The results are consistent with empirical studies and existing theories.

Dr. Antoine NIYUNGEKO has more than 12 years working experience as Consultant in many business areas.He has a PhD in International Entrepreneurship, Master in Negociations and Sales Team Management, Master in Operational and Strategic Planning, and Master in Human Resources Management. He has created an audit and consultant firm ELAN CONSULT. The company is specialized in auditing, accounting, tax assistance, capacity building, and strategic planing. He has audited many company and projects. He has also trained workers from many companies.He has made 19 publications. Others are still under peer-review. He is a reviewer at Business & Economics journal which is indexed on Springer Nature. He is passionated by research. He has much skills in data analysis (qualitative and quantitative data). He has produced a practical guide of data analysis including useful statistical tests(regression, mediation, factor analysis, correlation, mean comparison, proportion comparision,etc). He speaks and write French, English, and Kirundi. He is in charge of research and data analysis in one local University.He actively in data analysis. He can be contacted on mail: niyungantoine@yahoo.fr. or by phone (+257) 75 997 606.