The Impact Of Foreign Direct Investment On The Economic Growth

The thesis explains the nature of foreign direct investment in the Kingdom of Saudi Arabia. The paper also explores the nature of Saudi economy including all the different industrial sectors and the new economic cities established there. An empirical study has been done to analyze the causal relationship between FDI and economic growth in Saudi Arabia. I extend my investigation of FDI-growth causality using regression techniques that test other different variables which are responsible of economic growth. The results show that FDI-to-growth causality does exist and is reinforced by greater trade openness and higher oil prices. This study is based on yearly data covering the period from1970to2010. This thesis is divided into six chapters. The first one has the research background and the objective of the study. The Second chapter is regarding the literature Reviews. The third chapter is about the Saudi Arabian economy in general with more details about its different sectors and economic cities. The fourth discusses FDI in the Kingdom. The fifth one is regarding the empirical study about the impact of FDI on the economic growth. The last chapter is for the conclusion.