Study On The Impact Of IFDI On The Economic Growth In Cambodia

With the rapid development of economic globalization,the impact of FDI on a country's national economic growth is becoming more and more obvious.For developing countries,IFDI is regarded as the engine of economic growth.On the one hand,the introduction of IFDI has a tremendous positive impact on the economic growth of developing countries.On the other hand,the introduction of IFDI also brings advanced technology,employment opportunities,management experience and human resources to developing countries.Therefore,in order to attract more IFDI,countries constantly adjust their foreign investment laws and regulations,provide incentives for foreign investors and open up their foreign trade policies in an all-round way.In addition,since the first general election in 1993,the Cambodian government has constantly put forward many preferential policies to encourage foreign investment to attract more foreign direct investment.At the same time,in 1994,the Cambodian government established an open and free foreign investment law to attract and encourage foreign direct investment.After more than 20 years of development,most of Cambodia's economy relies on the introduction of IFDI to develop rapidly.Therefore,IFDI accounts for a large proportion of Cambodia's GDP.Because Cambodia is a country dominated by agriculture,most scholars focus on the impact of agriculture on Cambodian economic growth while neglecting the role of IFDI on Cambodian economic growth.Therefore,the study of the impact of IFDI on Cambodia's economic growth plays a crucial role to a certain extent,which provides a research direction for future Cambodian scholars to study Cambodia's economic growth.In this study,the impact of IFDI on Cambodia's economic growth is analyzed through the theory of IFDI's impact on economic growth.At the same time,the collected data are analyzed by econometric test method,and the empirical analysis is carried out by using EviewslO software.According to the empirical results,the introduction of IFDI has a significant impact on Cambodian economic growth.Cambodia's GDP growth is an indispensable engine.Therefore,the Cambodian government should promote the development of Cambodian infrastructure,optimize the investment environment,adjust the domestic industrial structure and accelerate the promotion and adjustment of Cambodian foreign investment laws and regulations to achieve liberalization and facilitation to attract more IFDI.