Impact of the Foreign Direct Investment on the Economy of the United Kingdom

1Baban Jabbar Othman, Farhad Al-Kake, MohdLizamMohdDiah, Bestoon Othman*, Shivan Hussein, Nawzad Majeed Hasan


This study aims at examining the impact of foreign direct investment in the United Kingdom. The study utilizes the vast empirical literature available on the subject plus data gathered from various reputable organizations. The study first examines the role foreign direct investment plays in economic growth of the United Kingdom and the impacts on the domestic investment. By using regression analysis, the study investigates the relationship between foreign direct investment and economic growth of the United Kingdom. Review of empirical literature sheds light on the particular manner in which foreign direct investment benefits the host country. The study was use different econometric models to establish the relationship between FDI and economic growth. Data for analysis is collected from reputable organizations such as the IMF, Fraser Institution, UNESCO reports, The World Fact Book among others. Secondary data were collected from this study and the data were analysed using the SPSS. Correlation results help in examining the role played by various host country conditions in determining foreign direct investment. Also, the results highlight the significance of the different institutional factors in determining foreign direct investment. This study adds weight to the existing literature on the role foreign direct investment play in the host economies.


Foreign Direct Investment, Economy, United Kingdom, UNESCO reports

Paper Details
IssueIssue 2