Academic Paper from the year 2018 in the subject Economics - Economic
Cycle and Growth, grade: 1.3, University of Wuppertal, language:
English, abstract: The main aim and purpose of this seminar is to
examine, analyze and present the impact of FDI Inward stock and ICT
capital on the economic growth of an economy considering the sample
countries. As a general structure, the essay would first give an
introduction about economic Globalization and its indicators
particularly focusing on FDI and ICT. On the literature review part of
the essay, cited definitions and theoretical background of FDI and ICT
are presented. In an attempt to strengthen the essay, a brief insight
into Economic growth and the linkage between FDI, ICT and economic
growth is included. The empirical analysis of this essay investigates
econometric relations and presents econometric results from the
conducted analysis based on the collected data from the sample
countries. Growth accounting approach using supply-side Cobb-Douglas
production function is applied to look at the economic impact of growth
rate of FDI Inward stock and growth rate of ICT capital on economic
growth. The econometric analysis is structured in a way to first look at
the separate impacts of the two independent variables on economic growth
which is measured by growth rate of real GDP. Secondly, as a final
model, the combined impact of the two independent variables on the
growth rate of real GDP is presented and discussed. Standard panel data
models are applied to investigate the empirical relationship pertaining
to the selected BRICS countries (Brazil, Russia, India, China and South
Africa). Data collected from year 1995 to 2015 is considered for the
forthcoming econometric analysis. Finally, a summary of the work with
conclusion and policy recommendation is given.
