IMPACT OF FDI ON ECONOMIC GROWTH IN THE WORLD AND IN ARMENIA

FDI plays a significant role in the development of economy of every country. It is of vital importance, especially for the economy of a small and developing country, such Armenia is, since the limited opportunities for domestic investments may hinder the achievement of potential economic growth. The objective of the article is to estimate the impact of FDI on economic growth in the world and in Armenia. The results of the analysis show that the change in FDI facilitates the economic growth in Armenia to a greater extent than in the world on the average. Therefore, this indicator shall serve as a basis for the development of a policy aimed at creating a more favorable investment climate for the RA economy.