GCC Countries’ Financial Scenario: FDI Impression on GDP

Abstract

Foreign direct investment is accumulation of equity capital, borrowings, and plough back of gains. Foreign financing inflows have significant effect in transforming economy of a nation. However, this investigation makes an effort to test the significance of FDI inflows on GDP apropos constituent countries of Gulf Cooperation Council. The study commenced with the motive to check the trend in FDI inflows and its growth rate, FDI’s impression on GDP, and impact of FDI on per capita GDP in GCC countries. The study is based on secondary data and analytical research design is applied. The study utilized a data of GDP and per capita GDP pertaining from 2000 to 2019. Statistical techniques, such as two-way ANOVA and pair-wise comparison, are applied. It can be concluded that there is cogent variation in GDP and per capita GDP due to inflow of FDI among GCC countries.