The effect of foreign direct investment on Afghanistan's GDP growth from 2002 to 2019

Abstract

Foreign direct investment (FDI) as one of the major elements of economic growth in developing countries has been of great importance in the such economies, which most of these countries are trying to attract and lay the groundwork for it. The purpose of this study is to investigate the effect of foreign direct investment on GDP growth in Afghanistan. secondary data is considered for 18 years from 2002 to 2019, the data has been collected through documentary methods, and analyzed as quantitative method by using ordinary least square (OLS) model. The results show that there is a positive relationship between foreign direct investment and increasing the level of gross domestic products (GDP), and explains that 1% change in FDI causes a 17% change in the level of GDP, and finally the alternative hypothesis is confirmed at 0.1 significant level.