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Conclusion Mittal IB
Conclusion Mittal IB
Earlier research has shown that Foreign Direct Investment (FDI) by multinational
enterprise (MNE) contributes to economic growth. Domestic investment may accelerate
economic growth but new technology is usually acquired through FDI. FDI is promoted to
effective economic growth and the role of the foreign direct investment in this field has been
extensively known in China and India. Economics have been using FDI as a stimulus in the
growth process for their business.
The growth theory says, exports and FDI have played a crucial role in the growth of the
business. Export and economic growth have a triangular relationship because of FDI. Romer
(1993), argues that important 'idea gaps' between rich and poor countries. He notes that foreign
investment can ease the transfer of technological and business know-how to poorer countries. As
conclusion, FDI is important for a economic growth of country because FDI can play an
important role in modernizing a national economy and promoting economic development.
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