The Impact of Foreign Direct Investment on Economic Growth: Evidence from Myanmar

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.