Thesis Abstract

Abstract
This thesis investigates the impact of foreign direct investment (FDI) on economic growth in developing countries. The study aims to provide a comprehensive analysis of how FDI inflows influence the economic development of developing nations, focusing on various factors that mediate this relationship. The research employs a mixed-methods approach, combining quantitative analysis of macroeconomic data with qualitative insights from case studies of selected developing countries. The introduction section presents the background of the study, highlighting the importance of FDI as a driver of economic growth and development in the context of developing countries. The problem statement identifies the gaps in existing literature and sets out the research objectives, which include examining the relationship between FDI and economic growth, exploring the mechanisms through which FDI affects growth, and assessing the varying impacts of FDI across different sectors and regions. The literature review chapter synthesizes existing research on the link between FDI and economic growth, discussing theoretical frameworks, empirical studies, and key findings in this field. The review covers topics such as the channels through which FDI can stimulate economic growth, the role of host country policies in attracting and maximizing FDI benefits, and the potential risks and challenges associated with FDI inflows. The research methodology chapter outlines the research design, data sources, and analytical methods used in the study. It describes the selection criteria for case study countries, the variables examined in the quantitative analysis, and the qualitative research approach employed to gather in-depth insights into the impact of FDI on economic growth. The findings chapter presents the results of the analysis, highlighting the relationship between FDI inflows and economic growth in the selected developing countries. It discusses the varying impacts of FDI across different sectors, the role of government policies in maximizing FDI benefits, and the potential challenges faced by developing countries in attracting and retaining FDI investments. The conclusion chapter summarizes the key findings of the study, drawing implications for policy and future research. It discusses the importance of FDI as a driver of economic growth in developing countries, the need for targeted policies to attract and maximize FDI benefits, and the potential risks and challenges associated with FDI inflows. The thesis contributes to the existing literature by providing a nuanced analysis of the impact of FDI on economic growth in developing countries and offering insights for policymakers, investors, and researchers interested in this important topic.

Thesis Overview

The research project titled "The Impact of Foreign Direct Investment on Economic Growth in Developing Countries" aims to investigate and analyze the relationship between foreign direct investment (FDI) and economic growth in developing countries. Foreign direct investment plays a crucial role in the economic development of countries by providing capital, technology transfer, employment opportunities, and access to international markets. This study seeks to explore how FDI inflows influence various aspects of economic growth in developing countries and to identify the key factors that determine the impact of FDI on economic growth. The research will begin with an introduction that provides an overview of the importance of FDI in the global economy and its significance for developing countries. The background of the study will discuss the historical context of FDI and economic growth in developing countries, highlighting the trends and patterns of FDI inflows over time. The problem statement will outline the research gap and the need for a comprehensive analysis of the impact of FDI on economic growth in developing countries. The objectives of the study will include examining the relationship between FDI and economic growth, identifying the channels through which FDI affects economic growth, analyzing the determinants of FDI inflows in developing countries, and assessing the policy implications for promoting FDI-led growth. The limitations of the study will be acknowledged, including data constraints, methodological challenges, and potential biases in measuring the impact of FDI on economic growth. The scope of the study will focus on a selected group of developing countries to provide a comparative analysis of the impact of FDI on economic growth across different regions. The significance of the study lies in its potential to contribute to the existing literature on FDI and economic growth by offering new insights, empirical evidence, and policy recommendations for policymakers, investors, and researchers. The structure of the thesis will be organized into five chapters, with Chapter 1 introducing the research topic, providing a literature review on FDI and economic growth in Chapter 2, outlining the research methodology in Chapter 3, presenting the discussion of findings in Chapter 4, and concluding with a summary and recommendations in Chapter 5. Definitions of key terms related to FDI, economic growth, and developing countries will be provided to clarify the conceptual framework of the study. Overall, this research project aims to deepen our understanding of the impact of foreign direct investment on economic growth in developing countries and to offer valuable insights into the policy implications for harnessing the potential benefits of FDI for sustainable development and prosperity in the global economy.