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

Category: International Business Paper Type: Report Writing Reference: CHICAGO Words: 600

        This chapter of the research study discuss about the methods of the data collectionas well as for the analysis configuration which are used to designing the responsesfor the research questions. It additionally tries to determine the statistic and financial attributes of the respondents for evaluating the impact of FDI on the economic growth of the United States. Descriptive and quantitative observational strategies for estimation are utilized for the statistics analysis. As indicated by Hanvey, C. (2018), Quantitative technique is used to measure the research problem by generating the numerical data and transform it to useable statistics (Hanvey, 2018). This technique emphasizes the numerical and statistical data analysis. It clarified likewise that "the exploration procedure gives a methodical, arranged way to deal with an examination venture and guarantees all parts of the task are steady with one other". The exploratory research is based on the quantitative research study by using the positivism paradigm and deductive research approach (Wildemuth, 2016).

        This research studyis used to investigating the impacts of the foreign direct investment on the GDP growth of the United States by using the quantitative research design.The secondary data is used for this exploratory research study.By using the data according to the time series of 1980 to 2015 for identifying the impacts of the on the GDP growth of the United States is collected from the World development indicators and bureau of economic analysis. This data is provided in the Appendix.   GDP per capita of the United States is used as the dependent variable in this research study and three variables as foreign direct investment, inflation rate and gross capital formation is considers as independent variable.Due to the removal of the sharpness according to the time series data these all series are considered as natural logs. According to the neutral empirical evidence the best option is this type of log transformation. The software of the Microsoft is used for the estimation of the data.  The explanation of the independent variables is given below.

Foreign Direct Investment:

        (FDI) is the investment according to an economic growth of a United States which is made by the entity or company of one country for another country. Foreign direct investment is considered as percentage of GDP. 

Inflation:

        Inflation (INF) can be defined as the increment in the prices level. These prices are used for the services and goods actually it discussesfluctuation of the prices as increasing and decreasing of the prices. It also includes the rising levels of the prices according to currency purchasing power.To avoiding the deflection the inflation is limited by theState bank according to the economic growth. It is considered as annual percentage.

Gross capital formation:

         It is comprised by the additions of the outlays for the economy of the fixed assets and net changes for improving the inventories level. Railways and roads construction of Machinery, purchasing of plants, equipment which are used for land improvements are considered as fixed assets.

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.

Hanvey, C. 2018. " Data Collection Methods. In Wage and Hour Law." Springer, Cham. 19-46.

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.

Wildemuth, B. M. (Ed.). 2016. "Applications of social research methods to questions in information and library science." ABC-CLIO.

 


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