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Inflow of Foreign Direct Investment to the region of South Asia, determinants of the FDI inflows in the regions and its impact on economies of the Region

Volume: 126  ,  Issue: 1 , June    Published Date: 07 June 2023
Publisher Name: IJRP
Views: 163  ,  Download: 154 , Pages: 121 - 128    
DOI: 10.47119/IJRP1001261620224994

Authors

# Author Name
1 MF. Mohamed Marsook

Abstract

Not only have the developing counties focused on Foreign Direct Investment but developed countries also have focused on FDI since it has many good in finding capital for economic development. FDI provides in accessing new technologies, management techniques, finance and market for the production and movement of goods and services and employment opportunities for young generation of the host countries. South Asian Region which is one of big markets in the world has focused on attracting FDIs. This paper studies the correlation between the FDI Inflows to and the GDP of the Region and found that the positive strong relationship between the two variables. That is, Pearson Correlation between the two variable is 0.961 with the p value is 0.000 which is less than 0.01. Likewise, coefficient of the variable of FDI inflows is revealed as 49.151 and the coefficient of the consent value is revealed as 45.353. So, a regression line or the line of best fit is formed as Y= 45.353 + 49.151*X to indicate the relationship between the GDP and the FDI inflows to the region where Y denotes as Dependent variable of GDP of the region and X denotes as Independent variable of FDI Inflows to the region   The policy makers of each Country representing this region shall focus on attracting more and more FDIs to the region for economic growth of member countries. In addition, the policy maker of the countries in the region can follow the best practices followed in other countries of the region in attracting foreign direct investment, especially important factors such as establishing Special Economic Zone, Industrial cluster with liberal incentives, Investor facilitation services, B2B investment portal, Liberal & Transparent policy for FDI, Opening Most of the sectors to FDI under automatic route, Continuous investment in developing Infrastructures, Searching possibilities for new free trade agreements to enlarge the market size further in attracting investors and  FDI policy for providing ease of doing business and attract investments.

Keywords

  • GDP
  • FDI
  • Ease of Doing Business