The relationship between Foreign Direct Investment, Trade Flow and Economic Growth: Case Study of the OECS Countries

The relationship between Foreign Direct Investment, Trade Flow and Economic Growth: Case Study of the OECS Countries

The objective of this research is to empirically test the influence between Foreign Direct Investment, Trade Flow and Economic Growth of the Organization of Eastern Caribbean States（OECS）. This is research is strategized with various models or patterns. In this study Foreign Direct Investment is measured by annual direct investment which is employed as the dependent variable. The development variables include: Trade（exports and imports）, Labor（employment and unemployment）and Economic Growth which is measured by Gross Domestic Product. These are all employed as the independent variables for this research.
To reach the goal of this research a panel of annual data for a 6-year period（2015- 2019）was utilized for the economies of six OECS countries. The research executed was made through using empirical data. The data in this research was extracted from the Eastern Caribbean Central Bank and World Bank. Additionally, the methodology for this research comprises of an array of test this includes Correlation, Multiple Linear Regression and Hypothesis test to analyze the significance of the data. Furthermore, the test used accepted or rejected the proposed claims. This research is considered a casual research where quantitative method is used to perform the test and the data collected will be analyzed using the SPSS program.
This research will be beneficial for future researchers as it helps as a guide for further test, also it allows policymakers to be aware of the impact or significance of the variables selected. Throughout this study there are a few limitations that will be discussed during this investigation. Finally, the study can be used as a pathway for other researchers who intend to use a different method regarding in the selection of data.