Scientific journal
Научное обозрение. Экономические науки
ISSN 2500-3410
ПИ №ФС77-57503

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OSI INTERNATIONAL TRADE FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH: THEORETICAL ASPECT

Gichiev N.S. 1 Shabanov M.M. 2
1 Institute for Social and Economic Research
2 Dagestan State Technical University
The aim of this work is to study the theoretical aspects of the impact of trade openness, foreign direct investment on economic growth in the long term. A number of studies provide an explanation of long-term mechanism of communication open with economic growth and analyze growth as a cultivator process in a model of endogenous growth. In particular, it is argued provision under which trade integration can foster economic growth by changing the incentives and opportunities for foreign investment, product specialization with a high potential for innovation produce technological innovations. In particular, it was found that unilateral liberalization, even in one country in terms of economic growth in the long run generates a positive effect on the steady-state growth in all countries trading with it, as well as reducing the income gap between these countries. At the same time, trade openness in itself may not always be a sufficient condition to achieve higher growth rates. Therefore it is necessary to differentiate between different theoretical approaches to the problem of scientific schools of the relationship of openness of international trade, foreign direct investment and economic growth.