Thesis Abstract

Abstract
This thesis examines the impact of foreign direct investment (FDI) on economic growth in developing countries. The study explores the relationship between FDI and economic growth, focusing on the unique characteristics and challenges faced by developing countries in attracting and utilizing foreign investment. The research investigates the various mechanisms through which FDI can influence economic growth, including technology transfer, human capital development, and spillover effects. The study begins with an introduction that provides an overview of the importance of FDI in the global economy and sets the context for the research. The background of the study highlights the historical trends and patterns of FDI in developing countries, emphasizing the role of FDI in driving economic development and poverty reduction. The problem statement identifies key issues related to the effectiveness of FDI in promoting sustainable economic growth in developing countries. The objectives of the study are to analyze the impact of FDI on economic growth, identify the determinants of FDI inflows in developing countries, and assess the policy implications for maximizing the benefits of FDI. The limitations of the study are acknowledged, including data availability constraints and the complexity of measuring the causal relationship between FDI and economic growth. The scope of the study focuses on a selected group of developing countries to provide a comparative analysis of FDI trends and outcomes. The significance of the study lies in its contribution to the existing literature on FDI and economic growth by providing empirical evidence and policy recommendations tailored to the context of developing countries. The structure of the thesis includes a comprehensive review of the literature on FDI and economic growth in Chapter Two, followed by a detailed description of the research methodology in Chapter Three. The literature review in Chapter Two synthesizes existing research findings on the impact of FDI on economic growth, highlighting the theoretical frameworks and empirical evidence supporting the positive effects of FDI on host economies. The review also examines the factors influencing FDI inflows, such as market size, infrastructure development, and regulatory environment. Chapter Three outlines the research methodology, including the data sources, variables, and analytical techniques used to examine the relationship between FDI and economic growth. The methodology incorporates both quantitative and qualitative approaches to provide a comprehensive analysis of the research questions. Chapter Four presents the findings of the study, discussing the empirical results and their implications for policy and practice. The analysis explores the varying effects of FDI on different sectors of the economy, as well as the role of government policies in attracting and retaining foreign investment. Finally, Chapter Five offers a conclusion and summary of the research findings, highlighting key insights and recommendations for policymakers, investors, and other stakeholders. The conclusion underscores the importance of fostering a conducive environment for FDI to maximize its potential benefits for economic growth and development in developing countries. In conclusion, this thesis contributes to the understanding of the impact of FDI on economic growth in developing countries and provides valuable insights for future research and policy formulation in this field.

Thesis Overview

The project titled "The Impact of Foreign Direct Investment on Economic Growth in Developing Countries" aims to investigate the relationship between foreign direct investment (FDI) and economic growth in developing countries. Foreign direct investment is a critical component of international capital flows and has the potential to significantly impact the economic development of host countries. This research seeks to explore the various channels through which FDI influences economic growth and to analyze the specific effects of FDI on key indicators of economic performance in developing countries. The research will begin with an introduction that provides background information on the topic, including a discussion of the importance of FDI in the global economy and the specific relevance of FDI to developing countries. The problem statement will highlight the existing gaps in the literature regarding the impact of FDI on economic growth, while the objectives of the study will outline the specific research questions that will guide the investigation. The limitations and scope of the study will be clearly defined to provide a framework for the research, and the significance of the study will be discussed to emphasize the potential contributions of the research to the field of economics. The literature review will form the second chapter of the research overview and will provide a comprehensive analysis of existing studies on the relationship between FDI and economic growth. This chapter will explore theoretical frameworks and empirical evidence to identify the mechanisms through which FDI affects economic growth and to highlight the factors that mediate this relationship. The literature review will also examine the specific experiences of developing countries with FDI and will consider the policy implications of FDI for economic development. The third chapter of the research overview will focus on the research methodology, outlining the research design, data sources, and analytical techniques that will be employed in the study. This chapter will detail the methods for data collection and analysis, including the selection of variables, the econometric models to be used, and the strategies for interpreting the results. The research methodology will also address any potential limitations of the study and will justify the chosen approach to data analysis. Chapter four will present a detailed discussion of the findings of the research, highlighting the key relationships between FDI and economic growth in developing countries. This chapter will analyze the empirical results of the study and will interpret these findings in the context of the existing literature. The discussion will also consider the policy implications of the research findings and will suggest potential avenues for future research on the topic. The final chapter of the research overview will provide a conclusion and summary of the study, highlighting the main findings and contributions of the research. This chapter will also offer recommendations for policymakers and practitioners based on the research results and will suggest areas for further investigation. Overall, the project on the impact of foreign direct investment on economic growth in developing countries seeks to advance our understanding of the role of FDI in promoting economic development and to provide valuable insights for policymakers and researchers in the field of economics.