Threshold result of FDI on Economic growth: case in Georgia

Abstract

In today's world of increasing globalization and economic openness, foreign direct investment (FDI) is a critical factor that contributes to the dependency of economies. The volume of the global flows of foreign direct investment (FDI) has grown significantly during the last two decades. The data of variables used in this research are included from 2001 to 2021.Most of data for variables before 2001 are not available. The variables are as follows. The ratio of net FDI inflows to GDP is known as FDI. The United Nations Conference on Trade and Development (UNCTAD) Statistics are used to calculate net FDI inflows. Data for variables are derived from the World Bank databank's World Development Indicators (WDI).Threshold regression model is utilized in the research.