Economic growth and FDI/Hotmoney Relationship?
Could anyone explain to me how economic growth encourages more people to invest via Foreign Direct Investment and Hotmoney? (Capital Account BoP)
I understand that interest rate does, the higher the interest rate, the more incentive's by profit they are to invest (and ergo more demand for the pound and thus the value goes up)
But how does economic growth effect FDI and Hotmoney?
I understand that interest rate does, the higher the interest rate, the more incentive's by profit they are to invest (and ergo more demand for the pound and thus the value goes up)
But how does economic growth effect FDI and Hotmoney?
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