Foreign direct investment (FDI) is often seen as important
catalysts for economic growth in the developing countries.
FDI plays very important role in economic growth of countries
like India The relationship between Foreign Direct Investment
(FDI) and economic growth has long been a subject of great
interest in the field of international growth. In the era of volatile
flows of global capital, the stability of FDI emerges as an effective
channel to faster growth in developing countries, particularly
in relation to Least Developed Countries (LDCs). The
Neo-classical Growth model as well as endogenous growth
models provides the basis for most of the empirical work on
the FDI-growth relationship.