The impact of FDI on the Economic Growht of Liberia

The model being used in the thesis to show the relationship between the variables are GDP, FDI, Inflation rate, Exchange rate, and Real interest rate :I want a combine one Mutiples regression on all and explain the relationshiph. : Y=f(X,INF,ER,RIR) which represent GDP= FDI+Inflation rate + Exchange rate +Real interest rate using yi (GDP)=a+βixi+β2×2+Єi . Please see attached for your the work.

Abstract

Attracting foreign direct investment (FDI) has been critical to development agenda of most African countries due to its alleged advantages on economic growth. This study assessed the impact of FDI on economic growth in Liberia during the last thirty years (30) years using an economic model based on multivariate statistical analysis of secondary economic data captured from various government sources by the World Bank. The analyses used Gould’s 2012 study of the correlation between dollarization and monetary policy in Liberia to test the hypothesis using regression analysis, standard deviation, Chi Square test, and ANOVA calculations. It was found that FDI does have a positive impact on the economy, however the extent to which that positive impact contributes to social development and the intensity of that positive impact appear to depend on good governance. The findings of this study can contribute to an understanding of the possible positive relationship between FDI and economic growth within the context of Liberia. It will also support further studies with regard to enhancing the economic growth by contributing to the understanding of how foreign private capital investments in the country have had impacts.