The Impact of Foreign Direct Investment on Sustainable Development in Developing Countries

Abstract

The significance of this study lies in its contribution to understanding the nature of the impact of foreign direct investment (FDI) on the dimensions of sustainable development, as well as identifying the challenges and opportunities facing developing countries in leveraging it to achieve economic and social development. It also highlights its role in supporting development pathways and enhancing the efficiency of productive sectors. The study aims to clarify the concept of foreign direct investment and its relationship with sustainable development, identify its positive and negative effects, and analyze its impact on the economic and social aspects in developing countries. The research is based on two main hypotheses: the first assumes a positive impact of FDI on sustainable development across its various dimensions, while the second assumes the existence of potential negative effects in those same dimensions. The study adopts a descriptive approach to present phenomena and trends related to FDI, relying on primary and secondary data as well as official sources, in addition to an analytical approach to examine the relationships and impacts among the study variables. The findings indicate several key results, most notably the contribution of FDI to increasing gross domestic product (GDP), improving employment rates, and enhancing investment in productive sectors, thereby supporting sustainable development. The study also recommends strengthening international relations, promoting political stability, and adopting policies that contribute to achieving economic, social, and environmental balance in developing countries.