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IMPACT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH IN FIJI
Ron Rajiv, Regan 고려대학교 국제대학원 2017 국내석사
In this day and age, countries are opening up its doors and borders to Foreign Direct Investment (hereafter, FDI) as they have realized the importance that FDI has on the economic growth of a country. Government of Fiji (hereafter, GOF) has realized the importance of FDI in the economy and FDI has evolved to become an attractive source of development finance in accumulating physical and human capital development, creating employment, improving & transfer of technology, research and development (hereafter, R&D), efficiency and productivity gains in the Fiji economy. Information Technology (hereafter, IT) has also become a major element in determining the overall Gross Domestic Product (hereafter, GDP) growth rate. The paper investigates the role of FDI in the case of Fiji from 1980 to 2015. Multiple linear regression model is used to examine the relationship between the dependent variable and independent variables. The results show that there is significant positive impact of FDI, remittance, and trade openness (hereafter, TOPEN) on GDP. While coup and inflation are negatively correlated to GDP but are not significant. The results portray the positive impact of FDI that led to growth success in Fiji, but the consistency in growth was affected by external and internal factors (coups, natural disasters and global crisis) that led to considerable reduction in FDI inflows over time.