Thesis Abstract

Abstract
Foreign Direct Investment (FDI) has been recognized as a significant driver of economic growth in developing countries. This study examines the impact of FDI on economic growth in developing countries, focusing on the various mechanisms through which FDI influences economic development. Through a comprehensive literature review and empirical analysis, this research aims to provide valuable insights into the relationship between FDI inflows and economic growth in the context of developing countries. The study begins with an introduction that sets the stage for the research, highlighting the importance of FDI as a catalyst for economic growth in developing nations. The background of the study provides a historical overview of FDI trends in developing countries and the theoretical framework underpinning the relationship between FDI and economic growth. The problem statement identifies the gaps in existing literature and the need for further research to understand the specific channels through which FDI impacts economic growth. The objectives of the study are to analyze the theoretical and empirical literature on FDI and economic growth, investigate the specific mechanisms through which FDI influences economic development, and assess the impact of FDI on key economic indicators such as GDP growth, employment, and technology transfer. The limitations of the study are acknowledged, including data availability constraints and the complexity of measuring the true impact of FDI on economic growth. The scope of the study is defined in terms of the geographical focus on developing countries and the time frame of analysis. The significance of the study lies in its potential to inform policy decisions and investment strategies aimed at promoting economic growth in developing nations. The structure of the thesis outlines the organization of the research, including the chapters on literature review, research methodology, discussion of findings, and conclusion. The literature review chapter synthesizes existing research on FDI and economic growth, examining the theoretical frameworks and empirical evidence supporting the positive relationship between FDI inflows and economic development. Key topics covered include the role of FDI in technology transfer, human capital development, and export promotion in developing countries. The research methodology chapter elucidates the data sources, variables, and analytical techniques employed in the empirical analysis of the impact of FDI on economic growth. The study utilizes regression analysis and econometric modeling to assess the causal relationship between FDI inflows and economic growth indicators in a sample of developing countries. The discussion of findings chapter presents the results of the empirical analysis, highlighting the significant impact of FDI on economic growth in developing countries. The findings suggest that FDI inflows positively influence GDP growth, employment creation, and technology diffusion, supporting the hypothesis that FDI is a key driver of economic development in the developing world. In conclusion, this thesis contributes to the existing body of knowledge on the impact of FDI on economic growth in developing countries by providing a comprehensive analysis of the mechanisms through which FDI influences key economic indicators. The study underscores the importance of attracting FDI inflows to foster sustainable economic growth and development in developing nations, offering valuable insights for policymakers, investors, and researchers seeking to understand the dynamics of FDI-driven economic growth.

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. FDI plays a significant role in the global economy, and its impact on the economic development of developing nations has been a topic of interest and debate among economists and policymakers. By focusing on this relationship, the study seeks to provide valuable insights into how FDI inflows influence the economic growth trajectory of developing countries. The research will begin with an introduction that outlines the background of the study, defines the problem statement, and sets the objectives. The study will also identify the limitations and scope of the research, as well as highlight the significance of the study in contributing to existing knowledge in the field. Furthermore, the structure of the thesis will be outlined to provide a roadmap for the entire research work. Chapter two will consist of a comprehensive literature review that examines existing theories, empirical studies, and trends related to FDI and economic growth in developing countries. This chapter will critically analyze the key factors influencing the relationship between FDI and economic growth, providing a theoretical framework for the research. Chapter three will focus on the research methodology, detailing the research design, data collection methods, and analytical techniques to be employed in the study. The chapter will also discuss the sample selection process and data analysis procedures, ensuring the reliability and validity of the research findings. In chapter four, the research findings will be presented and discussed in detail. The analysis will explore the impact of FDI on various economic indicators such as GDP growth, employment, trade, technology transfer, and industrial development in developing countries. The chapter will also examine the potential challenges and opportunities associated with FDI inflows and their implications for economic growth. Finally, chapter five will provide a conclusion and summary of the research, highlighting the key findings, implications, and recommendations. The study aims to contribute to the existing body of knowledge on the relationship between FDI and economic growth in developing countries, offering insights that can inform policy decisions and strategies to promote sustainable economic development in these nations. Overall, the research on "The Impact of Foreign Direct Investment on Economic Growth in Developing Countries" seeks to deepen our understanding of the complex dynamics between FDI inflows and economic growth, shedding light on how developing countries can leverage FDI to achieve long-term economic prosperity and sustainable development.