A Study to Forecast Foreign Direct Investment Inflow to G-7 Countries for the Period 2018-2030

Abstract

The study is aimed to forecast the Foreign Direct Investment inflows in the G7 countries, for a period of 12 years ranging from 2018 – 2030. G-7 is a group of 7 member countries comprises of United States of America, United Kingdom, Canada, Japan, France, Germany, Italy. The Economies of G-7 countries are known as world’s highly economically and industrially developed countries. G-7countries are highly ranked on Human development index and accumulates the big national wealth. G-7 countries are owning 60% of the world Gross Domestic Product, therefore attract large Foreign Direct Investment inflows. G-7 countries account for 41.57% of the total world FDI inflow in year 2016 and 29.84% in year 2017, this share is decreasing continuously over the years. FDI inflow in G-7 also accounts for 2.18% of total GDP of G-7 countries and 1.16% in year 2017. This is a major cause of concern to the key policy formulators as G-7 countries are facing problems like decrease in GDP, growth rate, employment opportunities, decrease in per capita income, decrease in industrial output and demand. These problems can be overcome by drafting a more favorable economic policy which will encourage more FDI inflow. There is ample scope for increasing regional co-operation among the member countries in the field of foreign direct investment, among the member countries and with the other regional groups.