Despite the increasing role of foreign direct investment (FDI) in economic development, very limited research has been carried out on the causal links between trade, FDI and economic growth in Asian e

The gap

Consensus across the literature

Supporting evidence — 4 representative gaps

• Trade, foreign direct investment and economic growth in Asian economies (2008) · doi

  Despite the increasing role of foreign direct investment (FDI) in economic development, very limited research has been carried out on the causal links between trade, FDI and economic growth in Asian economies.

  Keywords: economic despite increasing role foreign direct investment development limited carried causal links trade growth asian
• Discussion: Challenges and Recent Developments of Foreign Direct Investments in Albania and Western Balkan Countries (2020) · doi

  Foreign direct investment (FDI) plays a crucial role in the growth and development of transitional economies and especially in countries where domestic capital is insufficient to meet the investment needs of the economy.

  Keywords: investment foreign direct plays crucial role growth development transitional economies especially countries domestic capital insufficient
• Reconsidering trade and investment-led growth hypothesis: New evidence from Nigerian economy (2020) · doi

  On the other hand, we have found mixed evidence on the investment-led growth hypothesis as only domestic investments demonstrated a significant positive impact on economic growth while FDI was not significant for economic growth in the country for

  Keywords: growth significant economic hand found mixed evidence investment hypothesis domestic investments positive impact country
• A Quantitative Study of FDI Impact on India's Economic Growth (From 2014-15 To 2025-26) (2026) · doi

  interpreting The study has several limitations that must be considered while the findings. It relies only on secondary data from official sources, which may be subject to revisions or reporting delays. The study period (2014–15 to 2025–26) is relatively short to capture long-term trends. Additionally, the study focuses on quantitative analysis and does not include qualitative factors such as policy changes, political conditions, and global economic shocks affecting GDP. LITERATURE REVIEWS 1. Theodore H. Moran (2003) researched FDI and Development: Role of International Rules and Regulations. The objective was to examine global policies influencing FDI and protect host countries’ interests. The methodology included descriptive and comparative analysis. Findings showed that long- term economic development, while short-term investments provide limited benefits. positively supports FDI and 2. R. Anitha (2012) examined Foreign Direct Investment and Economic Growth in India. The objective was to identify issues affecting FDI inflows improvements. The methodology involved analysis of secondary data that from official reports. Findings economic reforms and globalization significantly increased FDI inflows and strengthened India’s economic performance. indicated suggest 3. Mahanta Devajit (2012) analyzed the impact of Foreign Direct Investment on the Indian Economy. The objectives included evaluating FDI’s effect on domestic investment and human capital formation. The study relied on secondary data analysis. Findings revealed that the impact of FDI depends on investor motives, sector characteristics, and government policies. 4. Sarba Priya Ray (2012) examined the Impact of Foreign Direct Investment on Economic Growth in India: A Cointegration Analysis. The objective was to study the long-run and short-run relationship between FDI and GDP. The study applied and Error Correction Model cointegration techniques, and results confirmed a significant long- term equilibrium relationship between FDI inflows and economic growth. 5. Gulshan Akhtar (2013) examined Inflows of FDI in India: Pre and Post Reform Period. The objective was to analyze the sector-wise distribution of FDI across industries such as services, construction, and telecommunications. The study used secondary data from sources including the Reserve Bank of India and the Department of Industrial Policy and Promotion. The findings indicated that India has emerged as one of the fastest-growing economies and a major global investment destination. 6. R. B. Teli (2013) analyzed A Critical Analysis of FDI Inflows in India. The objectives were to study growth patterns and the impact of FDI on economic indicators. The methodology relied on secondary data from international and national reports. Findings revealed that FDI growth positively influenced GDP, employment generation, and foreign exchange reserves. 7. Angad Singh Maravi (2016) studied Foreign Direct Investment (FDI) in India: A Key for Economic Growth in India. The objective was to assess the impact and recent trends of FDI in India. The study used a descriptive approach based on secondary data. Findings that FDI to economic growth significantly contributes through improved management practices. technology, showed capital, and 8. Jyoti Gupta and Dr. Rachna Chaturvedi (2017) conducted a study titled A Study to Analyze FDI Inflow to India. The objective was to examine trends and forecast future FDI inflows. The methodology involved long-term trend analysis using secondary data. Findings showed that FDI plays an important role in bridging the gap between savings and investment in India. 9. N. Prasanna (2017) studied Impact of Foreign Direct Investment on Export Performance in India. The objective was to assess the relationship between FDI and manufactured exports. The methodology used economic data analysis of GDP and export variables. Findings confirmed that FDI has a significant positive effect on India’s export performance.

  Keywords: india economic investment secondary objective growth foreign inflows impact long term methodology direct short trends