Artificial Intelligence and Foreign Direct Investment

Fuente: Zenodo
Salvato in:
Dettagli Bibliografici
Autore principale: Roy, Shreya
Natura: Recurso digital
Lingua:inglese
Pubblicazione: Zenodo 2025
Soggetti:
Accesso online:
Tags: Aggiungi Tag
Nessun Tag, puoi essere il primo ad aggiungerne!!
_version_ 1866901776836329472
author Roy, Shreya
author_facet Roy, Shreya
contents <p><span>This paper fundamentally investigates the intricate relationship between Artificial Intelligence (AI) and Foreign Direct Investment (FDI). Developed nations utilize FDI as a mechanism for transferring data and advanced technologies to developing economies, simultaneously optimizing labour costs and accessing new markets. Employing a 2x2 General Equilibrium Model, this study demonstrates that FDI inflows into a small, open economy will stimulate expansion in the capital-intensive AI sector while concurrently contracting the non-AI sector. A descriptive analysis of the Indian context further substantiates this observation, revealing a strong positive correlation between AI and FDI inflows, suggesting that increased FDI will significantly enhance AI penetration. The findings emphasize the crucial role of policies that facilitate technology transfer, foster innovation spillovers, and promote sustainable development through AI-driven FDI. The paper also delves into specific Indian case studies where companies have successfully attracted substantial FDI, further elucidating the mechanisms through which FDI contributes to AI penetration.</span></p> <p><strong><span>Keywords</span></strong><span>: </span><span>Artificial Intelligence, Foreign Direct Investment, Technology Transfer, Economic Integration</span></p> <p><strong><span>JEL Classifications</span></strong><span>: </span><span>F21, O33, O19, C68</span></p>
format Recurso digital
id zenodo_https___doi_org_10_5281_zenodo_14684335
institution Zenodo
language eng
publishDate 2025
publisher Zenodo
record_format zenodo
spellingShingle Artificial Intelligence and Foreign Direct Investment
Roy, Shreya
Foreign Direct Investment
Technology Transfer
Artificial Intelligence/economics
<p><span>This paper fundamentally investigates the intricate relationship between Artificial Intelligence (AI) and Foreign Direct Investment (FDI). Developed nations utilize FDI as a mechanism for transferring data and advanced technologies to developing economies, simultaneously optimizing labour costs and accessing new markets. Employing a 2x2 General Equilibrium Model, this study demonstrates that FDI inflows into a small, open economy will stimulate expansion in the capital-intensive AI sector while concurrently contracting the non-AI sector. A descriptive analysis of the Indian context further substantiates this observation, revealing a strong positive correlation between AI and FDI inflows, suggesting that increased FDI will significantly enhance AI penetration. The findings emphasize the crucial role of policies that facilitate technology transfer, foster innovation spillovers, and promote sustainable development through AI-driven FDI. The paper also delves into specific Indian case studies where companies have successfully attracted substantial FDI, further elucidating the mechanisms through which FDI contributes to AI penetration.</span></p> <p><strong><span>Keywords</span></strong><span>: </span><span>Artificial Intelligence, Foreign Direct Investment, Technology Transfer, Economic Integration</span></p> <p><strong><span>JEL Classifications</span></strong><span>: </span><span>F21, O33, O19, C68</span></p>
title Artificial Intelligence and Foreign Direct Investment
topic Foreign Direct Investment
Technology Transfer
Artificial Intelligence/economics
url https://doi.org/10.5281/zenodo.14684335