Advances in Economics, Management and Political Sciences
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Proceedings of the 3rd International Conference on Business and Policy Studies
Series Vol. 68 , 05 January 2024
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Foreign Direct Investment’s Role in Bolivian Economy
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Abstract
In the context of globalization, one country’s economic growth is affected by the internationally traded goods and services and cross-border investments. It is known that in countries, especially the developing countries, foreign direct investment (FDI) plays a very transcendent role in realizing economic expansion and fostering development by supplying capital in need. This paper examined whether Bolivia´s economy is in conformity with the expectation for FDI by using time-series data from 1990 to 2018. The multiple regression analysis reflects a positive relationship, which is statistically significant, between foreign direct investment, economic size, and total exports in Bolivia. The Granger causuality test supports FDI’s effect on exports but does not find causuality for GDP. Therefore, we propose a long-term policy support for FDI to drive future Bolivian economic growth as well as its export expansion.
Keywords
foreign direct investment, economic growth, Bolivia
References
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Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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- Volume Title
- Proceedings of the 3rd International Conference on Business and Policy Studies
- ISBN (Print)
- 978-1-83558-267-1
- ISBN (Online)
- 978-1-83558-268-8
- Published Date
- 05 January 2024
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/68/20241351
- Copyright
- 05 January 2024
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited