The Impact of Foreign Direct Investment on Economic Growth: Evidence from Myanmar
Kyaw Linn Htun *
International Leadership University (ILU), Nay Pyi Taw, Myanmar.
Swe Swe Mar
International Leadership University (ILU), Nay Pyi Taw, Myanmar.
Htet Wai Wai Kyaw
International Leadership University (ILU), Nay Pyi Taw, Myanmar.
Richard Dare
International Leadership University (ILU), Nay Pyi Taw, Myanmar.
*Author to whom correspondence should be addressed.
Abstract
This study investigates the impact of Foreign Direct Investment (FDI) on Myanmar's economic growth from 2000 to 2020, focusing on key factors that influence FDI's effectiveness. The results show that FDI has a significant positive impact on economic growth, with human capital and political stability further enhancing its effect. However, high inflation weakens FDI's contribution, and excessive government expenditure reduces its marginal benefits. The study highlights the importance of stable governance, skilled labor development, inflation control, and efficient public spending to optimize FDI's role in fostering economic growth. This is the first study to offer these findings for Myanmar, providing valuable insights for policymakers and investors.
Keywords: Foreign Direct Investment (FDI), Myanmar economic growth, political stability, human capital development, government expenditure, inflation control, sustainable development, institutional quality, economic liberalization