THE ECONOMIC ESSENCE, CLASSIFICATION AND ROLE OF FOREIGN INVESTMENT IN ENSURING ECONOMIC GROWTH

Abstract

Foreign investment plays a significant role in the development of national economies by connecting domestic production with international financial resources, technologies and markets. For developing countries, attracting external capital can help overcome the gap between domestic savings and investment requirements. However, an increase in financial inflows does not automatically produce sustainable growth. The economic contribution of foreign investment depends on whether it expands productive capacity, improves efficiency and creates opportunities for domestic enterprises.