Changes In GDP Research Articles

Analysing forced migration’s impact on Ukraine’s economic sustainability

Purpose. To characterize consequences of forced migration from Ukraine to European countries, quantifying its impact on economic growth, the number, income of the economically active population, investment and industry of Ukraine, and to develop recommendations for overcoming the negative economic effect of migration. Methodology. The methods of analysis and synthesis, scientific abstraction, statistical analysis, economic and mathematical modeling, and graphical analysis were used. Findings. The article studies the factors that caused forced migration from Ukraine’s to European countries as well as the main differences in migration processes provoked by Russia’s war against Ukraine are substantiated. The economic effects and consequences of its impact on the Ukrainian economy are analyzed. The study is based on statistical data characterizing economic growth (GDP) and the factors that determine it (capital investment, economically active population). On the basis of the Cobb-Douglas production function with neutral scientific and technological progress or Hicks scientific and technological progress and the use of linear regression analysis methods, the relationship between changes in the number of economically active population and economic growth is established. Originality. A forecast of changes in GDP under the influence of forced migration of the economically active population of Ukraine in 2023 is calculated and three main scenarios of GDP dynamics are developed in accordance with these forecasts. Each of them envisages a significant drop in output under the influence of migration. Practical value. The article proposes ways to address the problem of forced migration in Ukraine’s economy and the consequences of its negative impact on sustainable development based on the experience of European countries. Ways to restore industry and attract investments to Ukraine are substantiated.

Assessing the Dynamics of Ecological Footprint in Relation to Economic and Energy Factors: A Comparative Analysis of Finland and Japan

AbstractThe ecological footprint (EF) has a complex relationship with several key factors, including economic growth, nuclear energy, urban population, and renewables. The scope of this paper is to analyze the effect of renewables (REN), GDP per capita, urbanization (URB), and nuclear energy (NUK) on EF by means of the ARDL model for Finland and Japan. The ARDL long-run estimated coefficients are validated by supplementary tests, such as FMOLS, DOLS, and CCR. While Finland and Japan share similarities in education, technology, and quality of life, they differ significantly in geography, population density, cultural practices, economic structure, and historical backgrounds. The main results indicate that in the long term, REN and NUK exhibit a negative impact on EF, while GDP and URB exhibit a positive impact on EF for Finland. Additionally, REN, URB, and NUK exert a negative impact on EF, while GDP exerts a positive impact on EF for Japan. The ECT of − 1.96 for Finland indicates a very fast and strong correction towards equilibrium in the EF following any short-term disturbances. Furthermore, an ECT of − 1.01 in the ARDL model for Japan indicates a very fast adjustment of the EF to its long-term equilibrium following any short-term disturbances caused by changes in REN, GDP, URB, or NUK. Our research proposes some policy implications for both economies. Its main contributions enhance the understanding of the complex relationships between economic growth, energy sources, urbanization, and environmental impact, providing guidance for sustainable development policies.

Towards sustainable development: Examining renewable energy consumption in E−7 countries

In the contemporary landscape, sustainable development became major challenge for the economy which is tackled if environmental issues are resolved. In this regard, this study investigate renewable energy, institutional quality, foreign direct investment (FDI), economic growth on environmental pollution in E−7 countries (Brazil, Russia, China, Indonesia, India, Mexico, and Turkey). Utilizing annual data from 2002 to 2023, selected the panel Nonlinear Autoregressive Distributed Lag (NARDL) after applying stationary process. The results depict that there is short and long run relationship among the selected variables, CO2 emissions exhibit an asymmetrical response to positive and negative shocks in exogenous variables. A one-percent change in FDI, GDP, IQ and EC reduce the carbon emission. Our research concludes with policy recommendation that prioritize priorities economic growth and environmental sustainability. To achieve a healthy environment and sustainable growth in the E7 countries, it is essential to strengthen institutional frameworks, encourage green investments, and foster technical innovation.

Comprehensive Sensitivity Analysis of Cost-Benefit Analysis Variables for Transport Interventions

Cost-benefit analysis (CBA) is the universally applied tool to assess economic viability in assisting decisions on transport investments. Its framework is heavily influenced by the numerous variables it considers through estimating and valuing the intervention’s effects. This paper – utilising the authors’ previously implemented CBA test environment – comprehensively analyses the sensitivity of significant variables of three typical CBA models for transport interventions (road, rail and urban) to understand the prevailing appraisal approach better and to help focus on further methodological improvements. Morris and Sobol methods were selected to study the global sensitivity of and the relations between the input parameters of the models. The sensitivity test of the three analysed models provided similar results regarding which variables are most influential in CBAs. Input variables such as the investment cost, the economic discount rate, forecasted GDP changes and specific elasticities to these GDP changes often have a firm but mostly linear effect. Value of time, vehicle operating cost and mode choice-related parameters such as car availability, car occupancy rate, level of service indicators (e.g. frequency of service) and potential to induce travel demand (proxied by a ‘no travel’ parameter) are inputs with considerable linear effects and greater interactive effects.

Analysis of the Characteristics and Driving Mechanisms of Carbon Emission Decoupling in the Hu-Bao-O-Yu City Cluster under the “Double Carbon” Target

The Hu-Bao-O-Yu urban area is a major source of carbon emissions in China. It is also a major source of energy exports and high-end chemicals in China. Reaching peak carbon emissions early is especially important for meeting the national peak goal. For urban areas that rely on natural resources, we need to make it clearer how carbon emissions and economic growth affect each other and slowly break the strong link between the two. Therefore, in this paper, based on the data on carbon emissions, the decoupling state and the driving mechanism of carbon emissions in the Hu-Bao-O-Yu City group are researched by using the Tapio decoupling model and GDIM method. A new decoupling index model is constructed by combining GDIM and the traditional decoupling model. The main findings are as follows: (1) The Hu-Bao-O-Yu urban agglomeration, Ordos City, Baotou City and Yulin City have significant growth trends in annual carbon emissions, with Yulin City being the most important carbon source for the Hu-Bao-O-Yu urban agglomeration and its economic contribution to carbon emissions of the whole urban agglomeration is the most efficient. (2) The decoupling of Hu-Bao-O-Yu, Huhhot City, Baotou City, and Ordos City is dominated by expansionary negative decoupling, whereas Yulin City has strong negative decoupling. (3) The Hu-Bao-O-Yu urban cluster mainly affects the carbon intensity of fixed asset investments and output carbon intensity, which is a key part of the carbon separation process. The energy scale and structure also play a part in this process over time. (4) Changes in GDP per capita are a bigger part of changes in carbon emissions in the Hu-Bao-O-Yu urban agglomeration. These changes also determine the direction for changes in carbon emissions in the Hu-Bao-O-Yu urban agglomeration. In the future, the Hu-Bao-O-Yu urban agglomeration needs to coordinate its economic growth. Ordos and Yulin need to speed up the optimisation and transformation of their energy structures. Baotou needs to push for the low-carbon transformation of its industries. Huhhot needs to do more research on carbon sequestration technology and spend more on environmental protection. This will make the Hu-Bao-O-Yu urban agglomeration a resource-saving urban agglomeration and improve its ability to reduce emissions.

THE ROLE OF IMPORTS AS THE FACTOR OF ENSURING ECONOMIC GROWTH IN ARMENIA։ CHALLENGES AND PROSPECTS

Trade is an essential factor in ensuring the economic growth of every country. Therefore, we identified the role of real imports in explaining statistically significant changes in the real GDP, and the role of changes in the real household final consumption expenditures and real exports of goods and services in explaining statistically significant changes in the real imports in the short-run, based on the least square estimation technique and using quarterly data covering from the first quarter of 2012 to the second quarter of 2023 to indicate the respective priorities to face external shocks and challenges, based on the scenarios designed by us. The respective estimates allowed us to conclude that the real imports have started to have a statistically significant impact in explaining the changes in the real GDP of Armenia due to the increased role of imports in ensuring export growth in Armenia. The increased role of imports is substantiated by the increased role of exports of services and goods and household final consumption expenditure due to the small size of the domestic market of Armenia and the appreciated Armenian dram against the US dollar and the Russian ruble. We stress the role of export diversification of those goods that Armenia has a comparative advantage in producing thereof by export markets and increase in the share of value-added created in Armenia with respect to the exported goods.

Simulation of the impact of changes in the volume of production and export of products on the food security of the country: on the example of Ukraine

Changes in the production of agricultural products in Ukraine are analyzed. Forecasting of the volume of exports of agricultural products from Ukraine until 2027 was carried out. The following factors were taken into account: projected changes in real GDP in those countries that are the main importers of these products; reduction of cultivated agricultural land caused by military actions; forecasted changes in the population of Ukraine during the forecast period. It was concluded that there are no threats to Ukraine's food security caused by changes in the production and export of agricultural products. The research was based on a forecasting method, which made it possible to take into account retrospective information and a number of internal and external factors affecting the processes of production and export of agricultural products. The sources of information were the data of the International Monetary Fund and the State Statistics Service of Ukraine. The hypotheses of the study were confirmed, and the results showed that the volume of production of agricultural products will be sufficient to support the population of the country, while maintaining the previous proportion of exports. At the same time, there is a potential for growth of the share of products that Ukraine can export. The forecast volumes of export of Ukrainian agricultural products obtained can serve as a guideline for regulating exports, taking into account the issue of food security in Ukraine.

Unveiling Development Gaps

The research from 1991 to 2021 compares human development progress in Indonesia and Thailand while analyzing factors influencing their Human Development Index (HDI). The study uncovers significant disparities by employing independent difference tests and Autoregressive Distributed Lag. Indonesia exhibits rapid economic growth yet faces health and educational inequalities. Thailand boasts a higher average HDI (0.70) than Indonesia's (0.63), signaling pronounced developmental gaps. ARDL analysis identifies distinct factors shaping HDI in each nation. Long-term impacts in Indonesia stem from increased life expectancy and education, while Thailand benefits from GDP and investment. Short-term effects reveal Indonesia's positive response to previous GDP changes, while Thailand experiences initial negativity but long-term positivity. Policy recommendations stress Indonesia's need to enhance investment, economic growth, health access, and education quality to narrow the HDI gap. Equitable wealth distribution and heightened investments in health and education are pivotal for achieving inclusive and sustainable human development.

Building a model for evaluating the efficiency of circular transformations in the context of technology transfer

The object of this study is the process of circular transformations in the context of technology transfer. It has been proven that circular transformations in the context of technology transfer are a new challenge in the global directions of harmonization of economic processes. The relevance of the study is determined by the fact that the development of technologies, in particular "green" technologies under modern conditions has become a catalyst for changes in production, consumption, and management of resources, which contributes to the achievement of the goals of sustainable development of enterprises. This involves focusing on the formation and support of social integration of the production sector and society, reducing emissions into the environment, and ensuring the balanced development of business entities at different levels of management. The characteristics of the level of circular transformations in the countries of the world were studied. The relationship between technology transfer and circular transformations was established through indicators of the degree of greening of the economy. A SWOT analysis of circular transformations was conducted to identify key opportunities and threats that would affect the business environment. A model for evaluating the effectiveness of circular transformations has been built. Based on the proposed model, the GDP change forecast for the EU countries for 2023–2027 was calculated. Carbon dioxide emission trends were predicted under optimistic and pessimistic scenarios, which made it possible to justify the need to transition to a carbon-neutral model of economic development and the feasibility of implementing "green" technologies. The transition to a new model of economic development will allow for optimal management of depleted resources, wider use of resource-saving technologies and will reduce pressure on the environment

Analysis of the Relationship between Privatization, Foreign Direct Investment, and Economic Growth in Azerbaijan

The solution of the main problems of the innovative development of the national economy directly depends on the attractiveness of foreign investments. In this study, the relationship between privatization, foreign direct investment, and economic growth is examined. In the analysis part, fully modified Least squares (fmols) and canonical cointegrating regress (CCR) tests, which show the cointegration rate, causal relationship, and correlation, were applied for statistical data reflecting the annual time series between 1996-2021. According to the results of the study, according to the FMOLS test results, it was concluded that a 1 percent increase in GDP led to 1.924,866 percent in privatization, and a 1 percent change in privatization led to a 0.906129 percent change in GDP. It also found that a 1 percent increase in privatization led to a 0.080900 percent (0.1811919 percent per CCR) increase in foreign direct investment. According to the CCR test, a 1 percent change in foreign direct investment also led to a 0.893101 percent change in privatization.

Towards a General Theory of Sustainable Development: Using a Sustainability Window Approach to Explore All Possible Scenario Paths of Economic Growth and Degrowth

Across decades of contemporary discussion on sustainable development, a core concern has been the balance between economic, social, and environmental dimensions. A critical strand of the debate focuses on economic growth versus economic degrowth and, more specifically, on whether economic growth can be sustainable in environmental terms and whether degrowth can be sustainable in social terms. This conceptual and theoretical article used the Sustainability Window, or “SuWi”’ method, to theoretically determine the sustainable window of economies. The window is defined as the upper and lower bounds of future change in GDP that could be deemed in line with achieving both environmental and social sustainability. The conceptual analysis considers all theoretically possible scenario paths for development by combining the outcome paths of economic, environmental, and social dimensions with the environmental and social productivities of GDP. Through SuWi analysis, it is found that only four of the logically possible scenario paths could be considered theoretically “sustainable”—two cases involving economic growth and two of degrowth. In the cases of each of the four paths, sustainability only emerges where they adhere to strict conditions in terms of environmental and social outcomes, as well as related productivities. The SuWi approach and its applied analytical formulas have many potential uses in 21st-century policymaking for sustainability, including supporting the United Nations Sustainable Development Goals. It provides a unique and comprehensive theoretical and analytical framework that enables the categorisation of the complex challenges of sustainability and quantitative analysis of policy choices. Such foresight analysis could greatly assist in providing an evidence base for future development planning and policy formulation, ex ante of locking in a pathway. Further implementation in applied studies that explore a comprehensive indicator set, robust and consistent across all relevant dimensions, offers a promising opportunity to advance empirical analysis of key questions in sustainable development globally at a critical juncture in human history.

The Impact of Terrorism on International Trade: A Panel Study for SAARC Countries

This study investigates the impact of terrorism on international trade among SAARC countries over the period 1990 to 2022. the study used international trade as a dependent variable, while Terrorism, GDP, Exchange rate and Real-world GDP are independent variables. Before going toward cointegration tests, the study used unit root tests and concluded that some variables were stationary at the level while others were stationary at the level. Unit root test results suggested using the PMG-ARDL model to estimate the long and short-run impact among variables. GDP positively correlates with trade, suggesting that economic growth encourages trade activities; exchange rate fluctuations have mixed effects depending on the appreciation or depreciation of the currency; and real-world GDP changes have a positive spillover effect on trade within the SAARC region and a significant positive impact on terrorism. Government policymakers should consider the issues of terrorism, insecurity, and law to reduce investor skepticism and fully actualize the potential of their trade hosting.

Impact of Changes in Fuel Prices on Inflation and Economic Growth in Mozambique

The fuel oil is a basic input to production, so an increase in oil price leads to a rise in production costs that induces firms to lower output. In parallel, oil prices change also effects, indirectly, the consumption, through its positive relation with disposable income. However, despite the relevance of the variation in fuel prices in economy, there are no recent study conducted to analyse the impact of changes in fuel prices on GDP and CPI in Mozambique. This study aims to contribute to filling the information gap by providing the quantification of the impact of fuel prices on GDP and CPI. So, the study aim to determine the impact of changes in FUEL prices on Inflation (Consumer Price Index – CPI) and Economic Growth (Gross Domestic Product – GDP), using quarter data from 2007 to 2020. Descriptive statistics, Unit Root Test, Johansen Cointegration Test and Error Correction Model, Granger Causality Econometric Models, Impulse and Response Function and Variance Decomposition Analysis are used. The results indicate that in Mozambique there are a cointegrating long-run relationship between FUEL prices and CPI and GDP, which suggest that the impact of FUEL prices shocks to CPI and GDP in short-run and long-run path. Also, the results show that changes in GDP and FUEL prices lead to an increase in CPI by 3.0% and 1.3%, respectively, <i>coeteris paribus</i>. The previous quarter’s errors (or deviation from long-run equilibrium) are corrected for with the current quarter at a convergence speed of 3.5% to GDP, and 4.8% to CPI. Granger causality tests also indicate causality between CPI and GDP, and the changes in GDP causes changes in other variables.

The Impact of Foreign Direct Investment on Economic Growth in Jordan: A Study of the Period 1978-2021

Objective: This paper aims to measure the impact of foreign direct investment on economic growth in Jordan during the period (1978-2021), based on a set of standard tests that will help clarify the relation between the variables of the study. Theoretical Framework: This paper proposes to examine the benefits of an open market economy based on trade and investment liberalization. The focus will be on factors that attract foreign direct investment, such as improving GDP, infrastructure, and political stability. These factors significantly impact employment rates, technology transfer, export development, and balance of payments. Method: The study used Eviews-9 to estimate a suitable linear model. A unit root test using ADF methodology indicated stationary variables at I(0) level. The Johansen methodology was used to perform a joint integration test, which showed that the two variables were complementary according to the Trace Test and Maximum Eigenvalue. Results and Discussion: After estimating the results of the equation using the Ordinary Least Squares regression (OLS), the results indicate that if the percentage of foreign direct investment increases by 1%, the GDP increases by 0.05%. All transactions are statistically significant at a level less than (0.01). R2 also indicates that FDI explains 18% of changes in GDP. Research Implications: Foreign direct investment is crucial for developing countries like Jordan, as it helps increase cash flows. Jordan strives to create favorable laws to attract more investments. Originality/Value: The study compared Jordan's case with previous studies and found similarities and differences. Jordan's political, security, and geographical situation, along with continuous development of investment-related legislation, made it more fortunate than others.

Development Indexes, Environmental Cost Impact, and Well-Being: Trends and Comparisons in Italy

In 1990, the United Nations (UN) presented the Human Development Index (HDI) as a measure of human development that considers three fundamental dimensions: a long and healthy life, being knowledgeable, and having a decent standard of living. This paper proposes some considerations about human well-being factors based on HDI analysis, also introducing some considerations on environmental pollution. As regards environmental issues, two different pollutants are considered together with their environmental costs: (i) greenhouse gas (GHG) emissions, which have an impact on a global scale, and (ii) emissions from fine particulate matter, primarily having an impact on a local scale. Thus, a new index based on the external environmental costs is proposed, and two scenarios are discussed. On the other hand, as it concerns human well-being, the results of surveys among the population are used. Furthermore, other features regarding health services and demographic aspects are taken into account, too. Italy is analysed as a case study over the last three decades. Easterlin’s considerations are verified based on the variation of perceived well-being related to the changes in GDP. The Italian case study shows that despite having achieved a satisfactory HDI level, there is a wide margin for improvement from both the environmental and the well-being standpoints.

The Political Economy of Pandemics’ Influence On Hegemonic Shifts: A Comparison of the Influenza of 1918 and COVID-19

Following the World Health Organization (WHO)'s declaration of ending the public health emergency of international concern (PHEIC) for the COVID-19 pandemic in May 2023, this study seizes the opportune moment to analyze it alongside its historical precedent, the Influenza of 1918, commonly known as the Spanish flu. Amid the ongoing US-China rivalry for global leadership, the COVID-19 pandemic broke out when a century had elapsed since the Influenza of 1918. This analysis aims to test the hegemonic cycles approach of the World Systems Theory and to contribute to the literature of international political economy. The hegemonic cycles approach of the World Systems Theory calls for an analysis of the figures of industrial production, international trade, and finance to judge the changes within the international economy as a hegemonic shift, which occurs at 100-150 years in a circular nature. This study furthermore adds up the figures of GDP per capita to the analysis to provide insight into the level of welfare offered by the ascending hegemons to their citizens vis-à-vis the descending ones. Thus, changes in GDP per capita, industrial production, foreign trade, and finances of the UK vs. the US during the Influenza of 1918, and the US vs. China during COVID-19 provide insights into the political economy of pandemics in terms of their impact on changing hegemonic orders. The findings reveal that both pandemics triggered a period of hegemonic shift that was preeminent on economic terms within the international order.

Predictive strength of Macroeconomic Imbalance Procedure indicators

Motivation: The Macroeconomic Imbalance Procedure (MIP) is a key step in the European Semester, aimed at the coordination of the economic policies of the EU Member States to prevent excessive macroeconomic imbalances in the EU and support structural reforms. The MIP was originally envisaged as a legal tool for crisis prevention, allowing macroeconomic imbalances to be detected and then remedied, but is also used as an Early Warning System. However, the real strength of MIP indicators to predict crises has not been proved in practice and is widely contested in the literature.Aim: Fourteen scoreboard (“main”) and 28 auxiliary MIP indicators are currently in use. This paper is aimed at the assessment of the power of all MIP indicators in predicting crises.Results: The added value of our research is to test the MIP’s ability to predict changes in GDP, which may be considered as a proxy for the deterioration or improvement of the economic situation. Very little investigation has been done in this area so far. In addition, to our knowledge, no research papers have investigated the relevance of auxiliary MIP indicators. Our results show that only four main indicators (house price index, nominal unit labour cost index, general government sector debt, and export market shares) and another four auxiliary indicators (residential construction as percentage of GDP, activity rate, people living in households with very low work intensity, and export performance against advanced economies) seem to be able to predict the upcoming crises.

FORMATION OF THE INCOME PART OF THE STATE BUDGET OF UKRAINE UNDER THE CONDITIONS OF THE MARITAL STATE

The article describes the peculiarities of the implementation of the state budget on revenues during the period of martial law. The problems caused by russia's armed aggression in relation to Ukraine’s budget policy are outlined. It has been found that in fact, the need for financial assistance is provoked by the growth of the military expenses, since the revenue part of the budget is approximately the same as the expenses for the Ministry of Defense alone. The structure of losses in the economy and trends in GDP changes are analyzed. It is noted that in the general the picture of the economy of our country, state expenditures occupy an increasingly large volume. As in the previous year, the largest item of budget expenditures in 2023 is security and defense; at the same time, expenditures directed at it compared to the pre-war period have increased almost tenfold. The structure of the economy for 2022-2023 has undergone significant changes, the share of industries with a high tax rate has decreased, which negatively affects the level of tax payments from the economy. It was revealed that in 2023, as a result of the policy of the National Bank of Ukraine (hereinafter – NBU), aimed at maintaining a relatively high discount rate, the profits of the banking system exceeded pre-war indicators several times, which allowed it to obtain a significant positive financial result. It was noted that a significant part of the state budget revenues was earned by the fuel and energy sector, which, despite the war, continues to be a successful component of Ukraine's economy. When forecasting the revenues of the state budget, one should take into account the high degree of uncertainty and unpredictability, which affects the high probability of deviation of the actual figures of the estimate from the planned ones. The main key risks can be called the continuation of the war and the uncertainty regarding the further ways of its development, non-return of refugees from abroad, insufficiently fast implementation of the reforms; lack of assistance from international organizations and governments. The latter is not a convention, but a fact, because the key source of income in 2024 will be external borrowing, since the country's own resources (tax and non-tax revenues, transfers) should be enough to finance only half of the expenses. In fact, the need for financial assistance is provoked by the growth of military expenses, and the budget is written in the form of loans.

Energy-growth nexus in Australia and New Zealand for the past 150years-evidence from time-varying and quantile Granger causality analysis.

Using historical data on energy from (Malanima 2020) and GDP from the Maddison Project Database, this paper investigates the energy-growth nexus in a less-studied region, mainly Australia and New Zealand, since 1870. The long annual series allow meaningful application of recently developed time-varying and quantile Granger causality analysis. Results indicate that there is a bi-directional Granger causal relationship between economic growth and energy, coal, and oil consumption at both ends of the distribution, and during various time periods over the past 150years. Little evidence is found on the Granger causal relationship from gas consumption to economic growth, but some evidence on the direction from economic growth to gas consumption. The Granger causal relationships between electricity consumption and GDP change over time, but results suggest much closer links between the two in most recent decades, and big (positive and negative) changes in electricity consumption significantly Granger causes economic growth.

The Effects of Foreign Direct Investment on Economic Growth (Gross Domestic Product) in Tanzania

This study aims to analyse the effects of Foreign Direct Investment on Economic Growth (Gross Domestic Product) in Tanzania. The World Bank’s data on foreign direct investment and gross domestic product from 1988 to 2021 was employed in order to achieve the purpose of the study. The Vector Autoregressive Regression (VAR) Model was selected, in which a neoclassical growth model was applied within the implementation of this model. According to the findings of the research that was carried out, the Gross Domestic Product was primarily influenced by its prior values, which suggests that the economy is capable of some degree of self-sufficiency in terms of driving changes in the economy. According to the findings, foreign direct investment had a relatively minimal direct impact on gross domestic product, which suggests that other factors played a more significant role in influencing economic performance. There was no bidirectional causal relationship between gross domestic product and foreign direct investment; they both functioned independently of one another. It has been established that endogenous shocks have a significant role in driving changes in both GDP and FDI, which underscores the impact that internal forces have on the economic system. The importance of taking into account internal factors while conducting an analysis of economic growth has been brought to light as a result of these findings, which have contributed to a better understanding of the complex relationship that exists between GDP and FDI.