ՀՀ ՏՆՏԵՍՈՒԹՅԱՆ ՀԱՄԱՐ «ՕՏԱՐԵՐԿՐՅԱ ՈՒՂՂԱԿԻ ՆԵՐԴՐՈՒՄՆԵՐ - ՏՆՏԵՍԱԿԱՆ ԱՃ» ԿԱՊԻ ՎԵՐԼՈՒԾՈՒԹՅՈՒՆԸ / ANALYSIS OF THE RELATIONSHIP «FOREIGN DIRECT INVESTMENTS - ECONOMIC GROWTH» FOR RA ECONOMY

Abstract

The growth of foreign direct investment (FDI) as a component of GDP certainly contributes to economic growth. However, one should not forget that the relationship "economic growth - FDI" is "bi-directional", that is, in addition to the fact that FDI stimulates growth, it is also affected by economic growth. If there are many scientific and practical studies on the first, "traditional" direction of this "two-way" relationship, its other side - the impact of economic growth on FDI, has not been sufficiently studied. The goal of this article is to evaluate the impact of the growth of RA economy sectors on FDI using regression models. In the given article, the RA economy was regarded as an aggregate of the following sectors: industry, agriculture, construction, services and trade. Multi-factor regression models were built in order to identify and evaluate the connections between FDI and economy sectors in RA. An economic analysis of the results obtained by the models was also performed, and the impact on FDI was estimated for each of the considered factors. Particularly, the econometric analysis shows that, other conditions being equal: • 1% increase in the growth rate of industrial output leads to a 2.6% decrease in the volume of FDI. • 1% growth of the service sector contributes to the 5.5% growth of the volume of FDI. • 1% increase in agriculture leads to a 4.2% increase in the volume of FDI. • Increase in the trade sector leads to the increase of FDI volume, whereas the increase in the construction leads to the decrease of it.