Impact of Foreign Direct Investment, Official Development Assistance, and Financial Development on Economic Growth: An Empirical Analysis in Selected Asian Countries

Abstract

This research analyses the role of foreign direct investment (FDI) and official development assistance with financial development in determining the economic growth (EG) of selected Asian countries by using data from 2003 to 2018. In this research, we investigate the important role of official development assistance (ODA) and foreign direct investment along with other variables affecting GDP in selected Asian countries. By using panel data, a random effect technique is used to highlight the impact of ODA and FDI on GDP in selected Asian countries. The study results showed that official development assistance, urban population growth, and financial development have increased GDP in these countries. Findings suggest that a stable economic and political environment must be provided for further foreign aid and foreign direct investment. More credit facilities must be provided to the general public for more investment and economic growth.