Plausible Foreign Direct Investment‘ Impact on Sustainable Development Indicators of Differently Developed Countries

Abstract

The aim of this article is to formulate hypotheses about the impact of the foreign direct investment (FDI) on sustainable development indicators of differently developed countries with reference to the relevant scientific literature. The impact of foreign direct investment on development and facets of sustainable development has been discussed in this article. After the review of the relevant scientific literature some consistent patterns have been identified, what, finally, led to the formulation of initial hypotheses. The countries were grouped according to the level of their development. A set of sustainable development indicators reflecting different facets of sustainability and sensitive to countries' development level has been distinguished. The following indicators have been considered as relevant for inclusion into the set, which would be used for estimation of FDI impact on enhancing well-being in the unevenly developed countries: GDP, exports, inflation, population, life expectancy at birth, primary school pupils, infant mortality, total health expenditure per capita, total tax rate, internet users, and residential consumption of electricity). As this article is focused for the long-term perspective of FDI impact on sustainable development, it was based on three aspects of sustainable development: economic, social and environmental. Series of hypothesis have been formulated in this paper.

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