Donny Susilo


International investment is strategic step for country due to lack of capital and technology transfer and it is generally well known as Foreign Direct Investment (FDI). Many policy makers and academics contend that FDI can have important positive effects on a host country’s development effort. This research examines the impact of Foreign Direct Investment on Economic Growth in the United States by multiple linear regression model and its estimation using ordinary least squares (OLS). This research classifies all the sectors to be 10 sectors. This research uses data for the period 2000 –2017 and suggests that not all forms of foreign investment seem to be beneficial to host economies. Some sectors provide positive correlation to economic growth and some provides negative effect. Nevertheless, it is significant yet, this is because there is different characteristic between developed and developing countries. Economic growth in the U.S is mostly driven by personal consumption.


Foreign direct investment, economic growth, the United States, Investment, Sector, Development

Full Text:



Alfaro, L. (2003). Foreign direct investment and growth: Does the sector matter. Harvard Business School, 2003, 1-31.

Bezuidenhout, H. (2009). A regional perspective on aid and FDI in Southern Africa. International Advances in Economic Research, 15(3), 310-321.

Borensztein, E., De Gregorio, J., & Lee, J. W. (1998). How does foreign direct investment affect economic growth?. Journal of international Economics, 45(1), 115-135.

Central Intelligence Agency. Country Comparison: Stock of Foreign Direct Investment-At Home, 2017. Retrieved from

Department for International Development. (2011). Source of Economic Growth: trade of investment and Analytical Papers Topic 6 of 18. London: Author.

Dondeti, V. R., & Mohanty, B. B. (2007). Impact of foreign direct investment on the gross domestic product, exports and imports of four Asian countries: A panel data analysis. Delhi Business Review, 8(1), 1-21.

Frenkel, M., Funke, K., & Stadtmann, G. (2004). A panel analysis of bilateral FDI flows to emerging economies. Economic systems, 28(3), 281-300.

Hanson, G.H. (2001). Should Countries Promote Foreign Direct Investment? G- 24 Discussion Paper No. 9. UNCTAD Geneva.

IMF (International Monetary Fund) (2001), International Finance Statistics Yearbook, Washington, DC.

International Monetary Fund. Definition of Foreign direct investment. Retrieved October 16, 2012, from

Investment Consulting Associates. (2011). U.S. FDI Competitiveness Report 2011. Retrieved from Competitiveness-Report-2011.pdf.

Investopedia Dictionary. Definition of Real gross domestic product growth. Retrieved October 16, 2012, from

Johnson, A. (2006). The effects of FDI inflows on host country economic growth. The Royal Institute of technology. Centre of Excellence for studies in Science and Innovation http://www. infra. kth. se/cesis/research/publications/working papers.

Kuznets, S. (1934). National Income, 1929-1932. In National Income, 1929-1932 (pp. 1-12). NBER.

Lequiller, François, and Blades, Derek (2004), Comptabilité nationale: manuel pour étudiants, Economica, Paris. Includes CD-Rom.

Lipsey, R. E. (2004). Home-and host-country effects of foreign direct investment. In Challenges to globalization: Analyzing the economics (pp. 333-382). University of Chicago Press.

NAICS (North American Industry Classification System). 2012. No 54.

Nekipelov, A. (2011). The Concepts of Economic Growth and Economic Development: Standard Macroeconomics and “Pure Economics” Approaches. Moscow: Moscow School of Economics, Moscow State University Lomonosov.

OECD (2000).Main Determinants and Impacts of Foreign Direct Investment on China's Economy." Working Papers on International Investment 2000/4.

OECD (Organisation for Economic Cooperation and Development). (1996). Benchmark Definition of Foreign Direct Investment, 3rd Edition, Paris.

Organization for International Investment. (2012). Foreign Direct Investment in the United States. Retrieved from docs/FDIUS _3_14_12.

Ram, R., & Zhang, K. H. (2002). Foreign direct investment and economic growth: Evidence from cross-country data for the 1990s. Economic Development and Cultural Change, 51(1), 205-215.

Santoso, S. (2000). Buku Latihan SPSS Statistik Parametrik. Jakarta: PT Elex Media Komputindo.

U.S. Bureau of Economic Analysis. (2017). Current Dollar and Real Gross Domestic Product. Retrieved from xls

U.S. Bureau of Economic Analysis. (n.d). Foreign Direct Investment in the United States: Selected Items by Detailed Industry of U.S. Affiliate, 1980-2006 Retrieved from

U.S. Bureau of Economic Analysis. (n.d). Foreign Direct Investment in the United States: Selected Items by Detailed Industry of U.S. Affiliate, 2007-2011 Retrieved from

U.S. Department of Commerce. (2008). Assessing Trends and Policies of Foreign Direct Investment in the United States. Retrieved from

UNCTAD. (2010). Trade and Development report. Retrieved from

UNCTAD. (2012). World Investment Report: Towards a New Generation of Investment Policies. Retrieved from Library/wir2012_embargoed_en.pdf

United Nations Statistics Division. (2012). Detailed structure and explanatory notes. Retrieved from

World Bank. (1996). World Debt Tables: External Finance for Developing Countries, Vol. 1 (Analysis and Summary Tables). Washington, D.C.: The World Bank.

Zebregs, M. H., & Tseng, M. W. (2002). Foreign direct investment in China: Some lessons for other countries (No. 2-3). International Monetary Fund.


  • There are currently no refbacks.