FDI Contributes to Output Growth in the U.S. Economy

The introductory part of this study analyzes inward FDI (foreign direct investment) flow and inward FDI stock as a percentage of GDP (gross domestic product) indicating important role of foreign capital in the U.S. economy. The next part of this research has empirical character and focuses on the impact of inward FDI stock on output growth in the U.S. economy. The introduced regression model of economic growth proved the strong impact of FDI stock on output growth and verified the hypothesis that FDI stock, as compared with domestic capital, labor, export and multifactor productivity, constitutes an essential factor of economic growth in the U.S. economy.