Impact of Foreign Direct Investment on Economic Growth of UK

Quantitative Research Methods 2021-2022
Assessed Coursework: Dissertation Proposal (40% of total marks)
Please complete the following dissertation proposal form. The word limit is 1500 Words
(roughly 5 pages). Along with the completed Dissertation Proposal, please provide the full
reference of at least 5 (but no more than 10) peer-reviewed papers that are most relevant to the
proposal.
Dissertation Proposal Form
Name:
Student Number:
Programme of Study:
PROVISIONAL TITLE
Please note that you are free to change your title of research for your actual dissertation. At this
stage it should closely mirror the content of your proposal.
The impact of foreign direct investment on the economic growth of the nation: A study on
UK.
RESEARCH QUESTIONS AND OBJECTIVES
This should provide a clear indication of what your research seeks to achieve.
Aim
The aim of this research is to study how economic growth of the UK can be ensured by
encouraging flow of foreign direct investment within the country.
Research objectives
 To understand the concept of foreign direct investment.
 To determine the benefits of foreign direct investment for the nation’s economy.
 To analyse the relationship between foreign direct investment and economic growth
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of the nation.
 To recommend best economic policy as to in which sector / or sectors does foreign
direct investment should be encouraged and in which sector / or sectors the
imposition of conditions and restrictions in necessary on the flow of foreign direct
investment in it.
Research questions
1. What is foreign direct investment and why it is necessary for an economy?
2. What are the benefits of foreign direct investment for the economy of a nation?
3. How foreign direct investment is useful in boosting up the growth of a nation’s
economy?
4. What are the policies that should be in place pertaining to encouragement and
discouragement of foreign direct investment in different sectors of the economy?
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MOTIVATION
This should explain why you feel the research you are planning is worthwhile. This may be
expressed in the form of a problem which needs solving, or something you find of interest. You
are expected to demonstrate, in brief, a clear link between the previous work that has been done
in this field and the content of your proposal. You should indicate the key literature sources from
which you intend to draw your ideas.
The reason behind conducting this research is to develop an understanding of how foreign
direct investment plays a significant role in the economic growth of the nation. Also, with
this research, I will analyse those sectors that are highly suitable for exposing it towards
foreign direct investment along with the determination of those sectors in which foreign
direct investment should be discouraged and if not, what could be the possible
consequences. Further, the advantages that both recipient country and the country that is
making such investment gets as a result of FDI will be evaluated in this research (Asongu
and Odhiambo, 2020). At last, it would be identified that what are those economic
indicators that reflects growth in terms of economy as a whole that is resulting from
managed foreign direct investment. Another reason for which this study will be conducted
is to recommend policymakers that how could they go for framing differentiating FDI
policies for different sectors of the economy depending upon different scenario prevailing
within it.
The motivation behind conducting this research is to find solution to the unsolved issues
like poor flow of capital and low GDP of the nation like UK and to understand whether
foreign direct investment would be a great option for resolving such economic issues. Also,
the rate of unemployment and availability of job for those who desires to work is poor in
UK, so it would be analysed that whether there is any relationship exists between the
foreign direct investment and economic growth in terms of reduction in unemployment and
greater job creation within the nation (Am Marcel, 2019). In addition to this, I always have
been interested in understanding why many countries go for foreign direct investment while
some imposing restrictions on the flow of FDI in their nations. Various studies have been
conducted till now on how FDI affect an economic condition of the nation which helps in
getting useful insights over whether it is always favourable for the nation or sometimes it
may lead to poor economic scenario where there are various monopolistic conditions arises
in the nation’s market.
In the recent study conducted by United Nations Conference on Trade and Development, it
has been found that UK is leading in the world at second position after US as a destination
for foreign direct investment due to the continuous efforts of the government to attract more
FDI. The efforts of government include helping with the removal of potential barriers to
investment in order to support existing and encourage new investment from foreign
investors, so that they can ensure economic recovery and its boost up for their country that
is, UK. The study also shows that FDI increases from $2.1 trillion in 2019 to $2.2 trillion in
2020 for United Kingdom which places it on the second position after US (Li and Tanna,
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