G20 Member Countries and their FDI’s Potential to Influence the Economic Growth – Econometric Evidence Revealing a Positive Effect

Investigating G20 countries in terms of their FDI’s potential to influence the economic growth leads to a clear overview of how these countries have an impact on the world’s economy. This reasearch proposes the Panel EGLS (Cross-section weights) regression models with fixed-effects, based on a database between 2000 and 2022 years, to highlight a positive effect of foreign direct investment on economic growth. Considering the meaningful variables from the economy, the evidence of the study finds out that the economic growth of G20 member countries could increase by 25% as a result of the positive and significant impact of foreign direct investment. The results of this research explain how G20 countries’ economies could be increased and as well how important it is to attract continuously foreign direct investment as a macroeconomic decision for the host countries.