Trade openness hinders growth in Lesotho, foreign investment ineffective.
The study looked at how foreign investment, trade openness, and economic growth are connected in Lesotho from 1980 to 2011. The researchers found that trade openness and foreign investment have a long-term relationship with economic output. They also discovered that trade openness and foreign investment influence economic growth, with trade openness having a negative impact in the long run. Foreign investment was not a significant factor in explaining economic growth in both the short and long term.