Assessing the Impact of Foreign Direct Investment (FDI) on Economic Development: A Comprehensive Analysis of Growth, Employment, and Technological Advancement

Author(s)	Mr. Dhananjay Channale
Country	India
Abstract	Foreign Direct Investment (FDI) plays a crucial role in economic development by driving GDP growth, employment generation, and technological advancement. This study explores the impact of FDI on economic performance across regions, highlighting both positive and negative effects. Empirical evidence suggests that FDI enhances capital formation and productivity, particularly in countries with strong institutions, infrastructure, and human capital (Khan et al., 2023; Yao, 2020). However, its effectiveness varies by region, with Asian economies benefiting more than some Latin American countries due to absorptive capacity differences (European Investment Bank, 2020). FDI also creates jobs and fosters skill development, though low-skilled workers face job displacement risks (World Bank, 2020). Additionally, FDI facilitates technology transfer, particularly in high-absorptive sectors (OECD, n.d.). To maximize benefits, governments must enhance policy frameworks, invest in human capital, and promote domestic-foreign firm linkages.
Published In	Conference / Special Issue (Volume 7 \| Issue 3) - Two Day International Conference on Commerce & Economics (ICCE-2025) (May 2025)
Published On	2025-05-10

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