Thesis Abstract

Abstract
Foreign Direct Investment (FDI) is widely recognized as a key driver of economic growth and development, especially in developing countries. This thesis examines the impact of FDI on economic growth in developing countries, focusing on the various channels through which FDI influences economic development. The study utilizes a mix of quantitative analysis and literature review to explore the relationship between FDI and economic growth in a diverse set of developing countries. The first chapter provides an introduction to the topic, outlining the background of the study, problem statement, objectives, limitations, scope, significance, structure of the thesis, and key definitions. The second chapter presents a comprehensive literature review on FDI and economic growth, discussing the theoretical frameworks, empirical studies, and key findings in the field. Chapter three details the research methodology employed in the study, including the research design, data collection methods, sampling techniques, variables, and analytical tools used to assess the impact of FDI on economic growth. The chapter also discusses the limitations and challenges faced during the research process. In chapter four, the findings of the study are presented and analyzed in detail. The results highlight the various ways in which FDI contributes to economic growth in developing countries, including technology transfer, human capital development, infrastructure improvement, and export promotion. The chapter also discusses the challenges and risks associated with FDI inflows and their potential impacts on economic growth. Finally, chapter five provides a summary of the key findings, conclusions drawn from the study, and recommendations for policymakers, investors, and other stakeholders. The thesis concludes that FDI plays a crucial role in driving economic growth in developing countries, but its benefits are contingent on a supportive policy environment, good governance, and effective institutions. Overall, this thesis contributes to the existing literature on FDI and economic growth by providing a nuanced analysis of the relationship between FDI inflows and economic development in developing countries. The findings have implications for policymakers and investors seeking to leverage FDI for sustainable and inclusive economic growth in the developing world.

Thesis Overview

The project titled "The Impact of Foreign Direct Investment on Economic Growth in Developing Countries" aims to examine the relationship between foreign direct investment (FDI) and economic growth in developing countries. FDI has been recognized as a key driver of economic development, particularly in developing nations where capital is scarce. This research seeks to provide a comprehensive analysis of how FDI inflows impact the economic growth of developing countries, considering various factors such as investment patterns, host country policies, and macroeconomic conditions. The study will begin with an introduction that provides an overview of the research topic, highlighting the importance of FDI in fostering economic growth and development. The background of the study will explore the existing literature on FDI and economic growth, identifying gaps in knowledge that this research aims to address. The problem statement will clearly articulate the research question and the significance of investigating the impact of FDI on economic growth in developing countries. The objectives of the study will be outlined to specify the goals and aims of the research, focusing on analyzing the relationship between FDI and economic growth, identifying key determinants of FDI inflows, and assessing the policy implications for host countries. The limitations of the study will also be acknowledged to provide transparency on the constraints and boundaries of the research. The scope of the study will define the geographical and sectoral focus of the research, outlining the specific countries and industries that will be examined. The significance of the study will be highlighted to emphasize the potential contributions to academic literature, policy-making, and practical implications for stakeholders in developing countries. The structure of the thesis will be outlined to provide an overview of how the research will be organized, including the chapters and key sections that will be covered in the study. Finally, the definition of terms will clarify the key concepts and terminology used throughout the research to ensure clarity and understanding for readers. Overall, this research overview sets the stage for a comprehensive investigation into the impact of FDI on economic growth in developing countries, aiming to provide valuable insights and recommendations for policymakers, investors, and other stakeholders interested in fostering sustainable economic development through foreign investment.