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Foreign Direct Investment and Economic Growth: The Cases of Singapore and Oman
Author(s) -
Eudelle Philipp,
Shrestha Ashin
Publication year - 2017
Publication title -
global policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.602
H-Index - 33
eISSN - 1758-5899
pISSN - 1758-5880
DOI - 10.1111/1758-5899.12482
Subject(s) - foreign direct investment , productivity , investment (military) , economics , international economics , international trade , business , economic growth , macroeconomics , politics , political science , law
Economic growth is associated with improvements in productivity, and increasing productivity is driven by growth in economic efficiency, structural changes and substitutional activities. To raise these factors, innovation and trade are substantial drivers. However, there are many economies with a high potential for economic growth but a lack of domestic investment. Foreign direct investment ( FDI ) is able to fill the gap between investment needed to promote economic growth, and locally available investments. This article highlights the potential of FDI for small economies using Singapore and Oman as examples.