Thesis Abstract

Abstract
Foreign direct investment (FDI) plays a critical role in shaping the economic landscape of developing countries, impacting their growth and development trajectories significantly. This thesis aims to analyze the impact of foreign direct investment on economic growth in developing countries through a comprehensive examination of the various dimensions and mechanisms through which FDI influences economic outcomes. The study employs a mixed-methods approach, combining quantitative analysis with qualitative insights to provide a nuanced understanding of the relationship between FDI and economic growth. The research begins by setting the context in Chapter 1, which covers the introduction, background of the study, problem statement, objectives, limitations, scope, significance, structure of the thesis, and definitions of key terms. Chapter 2 delves into a detailed literature review, exploring ten key themes related to FDI and economic growth in developing countries. This section provides a comprehensive overview of existing theories, empirical studies, and debates surrounding the topic, laying the foundation for the subsequent analysis. Chapter 3 focuses on the research methodology, outlining the research design, data collection methods, sampling techniques, variables, and analytical tools used in the study. The methodology section incorporates both quantitative analysis of macroeconomic data and qualitative insights from interviews with key stakeholders to capture a holistic perspective on the impact of FDI on economic growth. In Chapter 4, the findings of the study are presented and discussed in detail. The analysis examines the direct and indirect effects of FDI on economic growth, considering factors such as technology transfer, human capital development, industrial productivity, trade integration, and institutional quality. The results shed light on the complex relationship between FDI inflows and economic growth in developing countries, highlighting both positive and negative implications of foreign investment. Finally, Chapter 5 provides a summary of the key findings, conclusions drawn from the analysis, and recommendations for policymakers, investors, and other stakeholders. The conclusion reflects on the implications of the study for theory, policy, and practice, emphasizing the need for balanced and sustainable strategies to harness the benefits of FDI while mitigating potential risks. Overall, this thesis contributes to the existing body of knowledge on the impact of foreign direct investment on economic growth in developing countries, offering insights that can inform decision-making and policy formulation in the context of global economic integration and development.

Thesis Overview

The research project titled "Analyzing the impact of foreign direct investment on economic growth in developing countries" aims to explore and understand the relationship between foreign direct investment (FDI) and economic growth in developing nations. This study is essential as FDI has become a significant source of external finance for many developing countries, and its implications on economic growth are of great interest and importance. The project will begin by providing an introduction to the topic, presenting the background of the study to contextualize the importance of FDI in the economic development of developing countries. The problem statement will highlight the gaps in existing literature regarding the impact of FDI on economic growth, and the objectives of the study will be outlined to guide the research process. Through a comprehensive literature review in Chapter Two, the project will analyze existing theories and empirical studies on the relationship between FDI and economic growth. This section will examine various factors influencing the impact of FDI, such as technology transfer, human capital development, and institutional quality, among others. Chapter Three will focus on the research methodology employed in this study, detailing the research design, data collection methods, and analytical techniques used to investigate the impact of FDI on economic growth. The chapter will also discuss the limitations of the study and the steps taken to ensure the validity and reliability of the research findings. In Chapter Four, the project will present a detailed discussion of the empirical findings, analyzing the impact of FDI on economic growth in developing countries. The results will be interpreted in light of the existing literature and theoretical frameworks, providing insights into the mechanisms through which FDI influences economic growth in these nations. Finally, Chapter Five will offer a conclusion and summary of the project thesis, highlighting the key findings, implications, and recommendations for policymakers, investors, and other stakeholders. The research overview underscores the significance of understanding the impact of FDI on economic growth in developing countries and emphasizes the importance of promoting sustainable and inclusive economic development through effective FDI policies.