| Summary: | 碩士 === 南臺科技大學 === 商管專業學院 === 107 === This paper aims at finding the main determinants of successful performance in economic growth for emerging economies, particularly India and Philippines. Globalization has become a common trend in the 21st century which has made the world become a small village where the borders have been broken down between countries. Globalization opened a portal through which opportunities flooded in, that have led emerging countries towards advancement and growth. Among them, foreign direct investment, capital formation and human development are currently considered important hub for economic growth. The purpose of this study is thus to evaluate impact of three variables namely: foreign direct investment (FDI), capital formation (GFCF) and human development (HDI) on the economic growth (GDP per capita). Data for India and Philippines were extracted from the World Bank and United Nations Development Programme sites for the period of 1990-2017. The study used Eviews version 10.0 to perform ordinary least squares (OLS) and vector error correction mechanism (VECM) in order to capture linear interdependencies among variables over the given sample period. The research shows that India's GDP per capita experienced variance due to shocks from its own previous values, capital formation and human development but shocks from foreign direct investment remains insignificant. Whereas, Philippines GDP per capita experienced variance due to shocks from human development but shocks from capital formation and foreign direct investment remains insignificant. In addition the study found out that for Philippines capital formation andforeign direct investment share a unidirectional causal relationship whereas, GDP per capita and foreign direct investment share a bi directional causal relationship. For India the relationship between GDP per capita and foreign direct investment is unidirectional.The study also lists several policy implications derived from its analytical results.
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