The relationship foreign direct investment and economic growth in Singapore / Najihah Yusof

Foreign direct investment is a serious issue, and many factors have influenced Singapore in recent years. The objective of the present study is to examine the relationship between foreign direct investment and Singapore from 1991 to 2020. The study specifically addresses whether there is a relationship between foreign direct investment and economic growth in Singapore. Here, the independent variables in this study are Gross Domestic Product (GDP), Gross Fixed Capital Formation (GFCF), and exchange rate (ER), and the dependent variable is Foreign Direct Investment (FDI). The Ordinary Least Squares (OLS) regression method was used in this paper to determine the significance of the independent variables in the relationship between foreign direct investment and economic growth in Singapore. The correlation test, multicollinearity, and heteroscedasticity tests were also used to discover the properties of data collected from the World Bank and Noema. The findings show that gross domestic product (GDP) is insignificant to foreign direct investment (FDI). In contrast, the exchange rate (ER) and gross fixed capital formation (GFCF) are significant with FDI.
Keyword: Foreign Direct Investment(FDI), Exchange Rate (ER), Gross Fixed Capital
Formation(GFCF), and Gross Domestic Product