Thesis Abstract

Abstract
Foreign Direct Investment (FDI) has become a crucial driver of economic growth in developing countries, attracting significant attention from policymakers, researchers, and investors. This study investigates the impact of FDI on economic growth in developing countries, focusing on the mechanisms through which FDI influences various aspects of the economy. The research employs a mixed-methods approach, combining quantitative analysis of FDI inflows and economic indicators with qualitative insights from interviews with key stakeholders. The study begins with an exploration of the theoretical underpinnings of FDI and economic growth, highlighting the potential benefits and challenges associated with FDI in developing countries. The literature review synthesizes existing research on the subject, examining the key factors that determine the impact of FDI on economic growth, including technology transfer, human capital development, and institutional quality. The research methodology section outlines the data sources and analytical techniques used to assess the relationship between FDI and economic growth. A panel data analysis of a sample of developing countries over a period of ten years is conducted to examine the short-term and long-term effects of FDI on economic growth. In addition, semi-structured interviews with government officials, business leaders, and academic experts provide qualitative insights into the practical implications of FDI in developing countries. The findings of the study reveal a positive and statistically significant relationship between FDI inflows and economic growth in developing countries. The analysis suggests that FDI contributes to economic growth through various channels, including technology spillovers, job creation, and export promotion. However, the impact of FDI on economic growth is found to be contingent on factors such as the quality of institutions, human capital development, and sectoral composition. The discussion of findings delves into the implications of the results for policymakers and investors, highlighting the importance of creating an enabling environment for FDI to maximize its benefits for economic growth. The study concludes with a summary of key findings, policy recommendations, and avenues for future research. Overall, this research contributes to the existing literature on the impact of FDI on economic growth in developing countries, providing valuable insights for policymakers, investors, and researchers seeking to understand and leverage the potential of FDI as a catalyst for sustainable economic development.

Thesis Overview

The research 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. With globalization and increased interconnectedness of economies, FDI has become a significant source of capital inflow for many developing nations, potentially leading to economic development and growth. This research seeks to analyze the impact of FDI on various aspects of economic growth, such as GDP growth, employment generation, technology transfer, and overall economic development. The study will begin with a comprehensive introduction that provides the background of the research topic, highlighting the importance of FDI in the context of developing countries. It will present the problem statement, which underscores the need to understand the specific mechanisms through which FDI influences economic growth in these countries. The research objectives will be clearly outlined to guide the investigation, focusing on exploring the relationship between FDI and economic growth indicators. The literature review section will delve into existing theoretical frameworks and empirical studies that have examined the impact of FDI on economic growth. It will analyze different perspectives and methodologies used in previous research to provide a solid foundation for the current study. The review will also highlight any gaps in the literature that the research aims to address, such as specific country contexts or sectoral analyses. The research methodology section will detail the approach and methods used to collect and analyze data for the study. It will outline the research design, data sources, sampling techniques, and analytical tools employed to investigate the relationship between FDI and economic growth indicators. The section will also address any potential limitations of the study and strategies to mitigate bias or errors in the analysis. The discussion of findings section will present the empirical results of the research, examining the impact of FDI on economic growth in developing countries. It will analyze the data collected and provide insights into the mechanisms through which FDI influences key economic indicators. The findings will be interpreted in the context of existing literature and theoretical frameworks, offering new perspectives on the relationship between FDI and economic growth. Finally, the conclusion and summary section will synthesize the key findings of the research and draw implications for policymakers, investors, and other stakeholders interested in promoting economic growth through FDI in developing countries. The section will also highlight the significance of the study in contributing to the existing body of knowledge on FDI and economic development and suggest directions for future research in this area. Overall, this research project on "The Impact of Foreign Direct Investment on Economic Growth in Developing Countries" aims to provide valuable insights into the dynamics of FDI and its role in driving economic growth and development in the context of developing nations. By examining the specific mechanisms and outcomes of FDI inflows, the study seeks to inform evidence-based policy decisions and strategies for fostering sustainable economic growth in these countries.