ANAYSIS OF THE RELATIONSHIP BETWEEN FDI AND ECONOMIC GROWTH – LITERATURE REVIEW STUDY

Abstract

The aim of this paper is to emphasize the importance of the FDI flows on the host country economic growth, through the view of the representative, theoretical and empirical research for the approached field. After analyzing the literature review concerning the effects of FDI in the beneficiary country, the following results were obtained: the impact capital flows exert on host country is significant and the main channels through which the effects are transmitted are: financial markets, host country absorptive capacity, human capital and technological.