Growth and FDI in OIC Countries

This paper uses annual aggregate data for 16 countries in Organization of Islamic Conference (OIC) for the period 2000-2006 to determine the impact of foreign direct investment (FDI) on growth. The OIC countries are classified based on 4 geographical groups of region (Africa, Asia, Middle East and Western Hemisphere). We have used panel regression analysis and empirical result support that a FDI and openness has a positive impact on growth into the OIC countries. In addition study finds FDI caused GDP growth in these countries. These suggest that FDI has indirect effect on economic growth in OIC