Impact of Foreign Direct Investment, Aid, and Export on the Economic Growth of South Asian Countries

Abstract

Foreign variables play an important part in any country's socio economic development, especially in developing and underdeveloped nations, key elements which including foreign investment, foreign aid, and export of products and services are given top importance. The goal of this research is to see how factors like foreign direct investment, international aid, exports, and economic growth affect South Asian nations including Pakistan, India, Bangladesh, and Sri Lanka. We used secondary time-series data from 2001 to 2019 to investigate the influence of foreign aid, exports, and FDI in south Asian nations using a linear method for this study. For the study, data on the World Bank's global development index was gathered (WDI). Correlation, coefficient, and regression analysis are used to examine the relationship between the dependent variable, economic growth (GDP), and the independent factors (FDI, foreign aid and export of goods and services). The results of the trials show that FDI , export, aid, and GDP all have a positive and statistically significant relationship. Based on the conclusions of this study, the article suggests that Pakistan, India, Bangladesh, and Sri Lanka discover effective solutions to maintain high economic growth rates and seek innovative ways of attracting FDI inflows, government development funding, and increase product and service exports.