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All Journal SCHOULID: Indonesian Journal of School Counseling Economica Insight
Rahman, Abdi
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Humanities Economics, Econometrics & Finance Health Professions Social Sciences

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Journal : Economica Insight

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Analisis Dampak Investasi Asing Langsung Terhadap Pertumbuhan Ekonomi dan Kesejahteraan Masyarakat di Negara Berkembang Fauzan, Muhammad; Rahman, Abdi
Economica Insight Vol. 2 No. 1 (2025): Economica Insight, November 2025
Publisher : Gema Cendekia Institute

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.71094/ecoin.v2i1.198

Abstract

This study examines the relationship between Foreign Direct Investment (FDI) andeconomic growth and welfare in developing countries, combining a review of classicaltheory and the latest empirical evidence up to 2025. The study summarizes thetransmission mechanisms of FDI (technology transfer, capital increases, spillovereffects), assesses the conditions for recipient countries to optimally benefit from FDI,and evaluates the current macro context in which global FDI flows and those todeveloping countries experienced a sharp decline in the early 2020s. The results showthat FDI has the potential to increase growth and welfare but its effects are highlydependent on absorptive capacity (human capital, financial markets, institutions) anddomestic policies. Policy recommendations are aimed at strengthening domesticcapabilities, improving investment quality, and integrating sustainable developmentgoals.
Co-Authors Muhammad fauzan Nurfarhanah Nurfarhanah