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Despite these logical empirical reasons to expect a affirmative relationship among GDP and FDI, the empirical evidence namely merged. For example, De Mello (1999) found that if FDI contributes to economy growth depends primarily aboard the characteristics of the host nation, particularly the quantity of proficient labor. Borensztein et al. (
Links of London shops) too established that when FDI has a assured clash on GDP, the importance of this efficacy depends aboard the level of people capital. Using either cross section and the links in the London plate thinking, Johnson (2006) showed that FDI inflows boosted economic growth in amplifying London shopping blogs correlate accumulations in London, but no in Advanced links accumulations in London. Alfaro (2003) conducted a relative inquiry between countries and base that total FDI exerts an doubtful effect on economy growth of the host nation,
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Links Of London Charms.) The relationship between FDI and economic growth rate namely fussy for policymaking in the real world. In the quondam 2 decades have witnessed a large amplify in FDI streams. According to UNCTAD (Links jewelry),
Fashion and Cool Links of London Jewellery for you, the universal FDI inflows additional from around $ 55 million in 1980 to nigh U.S. $ 1,400 million in 2000. This unprecedented growth of foreign straight investment streams has led to academic economists and policy makers to devote more effort to knowing the empirical relationships between GDP growth and FDI inflows in the host of links London shops.