FDIs effekt på ekonomisk tillväxt : Singapore och Sydkorea

• Main Authors: Kordi, Aran, Zizak, Filip
• Format: Others
• Language: Swedish
• Published: Södertörns högskola, Nationalekonomi 2021
• Subjects: Economic growth; FDI; Regressions; Singapore; South Korea; Economics; Nationalekonomi
• Online Access: http://urn.kb.se/resolve?urn=urn:nbn:se:sh:diva-46732

The purpose of this study is to evaluate if FDI can be used as a proverbial ‘another arrow in the quiver’ for boosting economic growth. The research topic at hand asks if a positive regression can be observed between the employment of external market forces, specifically FDI, and economic growth. The study covers Singapore and South Korea during the period 1972-2019. The theoretical framework includes Solow’s exogenous growth theory, Romer’s endogenous growth theory and the OLI-theory. These theories provide the mechanism and context which explains how FDI can affect an economy, these include capital accumulation and non-rivalising ideas. The data has been tested to see if it complies with the classical assumption of linear regression. The analysis is based on multiple variable regression where a new independent variable is presented for each new regression that is made. The results show that there is no statistically significant coefficient in the regression model between FDI-inflow and economic growth in both countries during the specified time period. This result occurred because the FDI variable for the multiple regressions for each country usually does not show a statistically significant result. This means that the coefficient values presented in the regressions cannot be interpreted as facts because they do not reach the confidence interval below 5% to be seen as trustworthy results.