Abstract:

Among the many problems that are part of the subject of economic science, economic growth has always been one of the most ambiguous and controversial. The importance of this issue in a transformational environment with multiple development vectors applies both to economically developed countries and to developing countries. The article considers the main concepts of the economic growth. It will examine the relationship between direct foreign investment and the pace of economic growth in developing countries in terms of the fundamental components of balanced or unbalanced developmentAn example of macroeconomic indicators is presented in terms of their balance of economic growth. Direct foreign investments are described as the engine of structural changes in the economy. The main result is to demonstrate the connection and interdependence between growth in gross domestic product as the criterion of economic growth of the national economy and the movement of foreign direct investment on the example of developing countries in the global context. It is proved that a steady flow of foreign direct investment ensures equilibrium economic growth due to the growth of new sectors. The dynamics of the movement of foreign direct investment (FDI) in groups of different countries (developed, developing, transition) and future trends in their development. The main tendencies of attraction of foreign investments by the countries belonging to different groups are analyzed. An overview of the reasons for changes in the activity of direct foreign investment flows in different periods of world economic activity was conducted. Scientific novelty is to establish the interconnection of foreign direct investment and the growth rates of developing countries in terms of the fundamental components of balanced or unbalanced development. Further research will focus on factor analysis of FDI flows.

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