Literature Review of Foreign Direct Investment, Inflation Rate, Gross capital formationImpacts on Economic Growth in United States

        The impact of the FDI on the economic growth of the United States has been investigated by the past studies according to the various approaches. The resultswhich are conducted from the previous studies, that are unclear that’s why this study has conducted to finding the impact of the FDI on the economic growth of the United States by using the various indicators as inflation and gross capital. The FDI is expected as positive and significant impact for the economic growth of the United States. Because it is proved by the several studies the FDI has positive significant relation with the economicsgrowth of the all countries as well as for the United States.

            According to the Nuno Carlos (2013), economic growth of the country is highly effected by the capital formation. The growth can increase only in short run by the FDI and it proved by the several theories. Technology, labor growth, inflation rate and capital formation have high effect on the economy growth in long run. Due to the some deficiencies of the models it depends on the particular assumption of the technological constant rate and the marginal return for the capital can be diminishing by it. Technology assumed as endogenous feature according to the growth of the endogenous theories.  This research study is tried prove the relationship of the FDI with economic growth of the United States (LEITÃO, 2013).

            It is investigated by the studies of the Blomstrom, M. (2014) the economic growth is highly influenced by the FDI and many other economic indicators. The intrinsic endow genetics can be measured by using the system methodology and significance of institution can also examine buy using this.  It didn’t shows only the growth of the countries it’s also showed the relationship of the various sources of growth and institutions. Foreign capital have founded the overall impact of the growth either it’s positive or negative or many research studies discusses the FDI has positive significant relationship with the economy of the country (Blomstrom, 2014).

            According to theJ Jones (2016), for national security there are few exceptions like as policy for the foreign investment according to the end of the World War II. The Foreign direct investment has been promoted and supported by it. It also includes the internal external investment of the United States just likes foreign and abroad direct investment of the United States. For several countries investment policies few issues which are related to national securities they are become more prominent according to the previo9s studies and past decades. It has also investigated by the United Nations investment policies has few issues related to national securities (Jones, 2016).

        According to the studies of the Forte (2013) many countries have been adopted new standards for restricting the investment of the foreign traders and it has existing laws amendment for concerned with the reviews of the issues related to national security and investment. It has recognized by the top ten international organizations for the legitimating concerns to the nations in confining foreign investment for their economies certain sectors. The previous increment in such type of the restrictions which has raised policy issues in number of terms. According to the framework of the research study it has proved efficiency of the FDI is higher than the domestic investment. This also proved by this study inflation rate and capital formation also has not significant positive relation with economic of the United States.

References of Foreign Direct Investment, Inflation Rate, Gross capital formationImpacts on Economic Growth in United States

Blomstrom, M. 2014. . Foreign Investment and Spillovers . (Routledge Revivals). Routledge.

Jackson, James K. 2017. Foreign Direct Investment in the United. Specialist in International Trade and Finance.

Jones, J., & Wren, C. 2016. . Foreign direct investment and the regional economy. Routledge.

LEITÃO, Nuno Carlos. 2013. "The impact of foreign direct investment on economicgrowth: the Portuguese experience." Theoratical and applied economics 1 (58): . 51-62.