Discuss the Impact of International trade or Inward FDI on economic growth or development in an Emerging Economy

High school
Finance & Accounting
Pages 10 (2510 words)
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The Impact of Inward FDI on Economic Growth or Development of an Emerging Economy Table of Contents Introduction 3 The Economy of India 3 FDI in India 5 In the recent past 5 At present 6 Role of FDI in Economic Growth 9 Conclusion 11 References 12 Bibliography 14 Introduction In today’s globalised world Foreign Direct Investment (FDI) is one of the most important sources of economic growth for most of the developed as well as developing nations.


There are several definitions which are provided by different international organizations like IMF and The United Nations. The International Monetary Fund’s (IMF) definition says that FDI refers to an investment that’s main objective is to obtain a ‘lasting interest’ in an entity which operates in an economy that is different from the economy where the investor operates in (Moosa, 2002). A ‘benchmark definition’ of FDI is provided by the Organization for Economic Co-operation and Development (OECD). It says “foreign direct investment reflects the objective of obtaining a lasting interest by a resident entity in one economy (direct investor) in an entity resident in an economy other than that of the investor (direct investment enterprise)” (Organisation For Economic Co-Operation And Development, 1999). This paper discusses the role of FDI in an emerging economy like India. It aims to provide a clear picture about how FDI has played an important role in the economic growth of the country. Furthermore, the paper also includes a brief overview of the Indian economy and the way in which it is performing over the past two decades. ...
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