FDI inflows are generally correlated with economic growth. This is why countries fight to attract FDI.

Question

Quizplus · Accepted Answer

FDI (Foreign Direct Investment) inflows usually bring in new technology, capital, and jobs, and therefore can boost the economy of the host country. This is why countries often offer incentives to attract FDI, such as tax breaks, infrastructure improvements, and streamlined bureaucratic procedures.

FDI Inflows Are Generally Correlated with Economic Growth