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Contribution of International Flow of Capital and Product Services on the GDP of Maldives

DOI: 10.3923/pjssci.2010.408.414

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Abstract:

The aim of this study is to examine the effect of international flow of capital and product services on GDP in the case of Maldives. Using the annual data from 1980-2007 we found that product service of export and Foreign Direct Investment (FDI) are the influencing factors of the GDP of Maldives where as product service of import and remittance are not the driving force of the GDP. So Maldives government should imposed more emphasis on exports and foreign investment depending on tourist sectors with policies to encourage people to exports more and give more relax able condition for foreign investment.

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