The Impacts of the Inwards and Outwards FDI on the Development Measured by GDP

Abstract

Despite the results of different studies conducted in the impacts of FDI and the policies of FDI in different countries and regions and its impacts on the recipient countries, most of these studies concentrated on the impact of FDI on the economic growth measured by the GDP in receiving FDI countries, however, this study the impact of both the inflow and outflow FDI on the economic growth measured GDP in UDE which considering one of the rich countries in the worlds and have inword and outward invests in the same time.

Ordinary least square method is applied and both simple and multiple regressions is used, the results show that both inflow and outflow FDI have an impacts on the GDP alone, and both inflow and outflow together only the inflow FDI has an impact on the GDP so that the impacts of the outflow is eliminated with the impact of the inflow FDI. The explanation of that is the inflow FDI brings with it many direct benefits to the people of the country while the outflow FDI brings indirect benefits and long run benefits to these people.