Thesis Abstract

Abstract
Foreign Direct Investment (FDI) has been recognized as a significant driver of economic growth in developing countries. This study aims to investigate the impact of FDI on economic growth in developing countries, focusing on key determinants and potential challenges. The research methodology involves a comprehensive literature review to analyze existing theories and empirical evidence on the subject. Additionally, data analysis will be conducted to examine the relationship between FDI inflows and economic growth indicators in a sample of developing countries. The study begins with an introduction that highlights the importance of FDI as a catalyst for economic development and provides a background of the research topic. The problem statement addresses the challenges faced by developing countries in attracting and maximizing the benefits of FDI. The objectives of the study are to identify the factors influencing FDI inflows, assess their impact on economic growth, and propose policy recommendations to enhance the positive effects of FDI. Limitations related to data availability, reliability, and scope of the study are acknowledged, as well as the potential challenges in measuring the precise impact of FDI on economic growth. The scope of the study is focused on developing countries, with a particular emphasis on key regions and sectors that attract significant FDI inflows. The significance of the study lies in providing insights for policymakers, investors, and researchers to understand the dynamics of FDI and its implications for economic growth in developing countries. The structure of the thesis is outlined, detailing the organization of chapters and sub-sections that will guide the reader through the research process. Definitions of key terms related to FDI, economic growth, and developing countries are provided to ensure clarity and understanding throughout the thesis. In the literature review, ten key items are identified and analyzed to explore the theoretical framework and empirical evidence on the relationship between FDI and economic growth. The review covers topics such as FDI determinants, host country policies, sectoral impacts, technology transfer, and spillover effects. The research methodology chapter outlines the data sources, variables, and analytical techniques used to investigate the impact of FDI on economic growth. Eight components are discussed, including data collection methods, econometric models, and statistical tools employed for the analysis. Chapter four presents a detailed discussion of the findings, highlighting the empirical results and key insights derived from the data analysis. The implications of the findings are discussed in relation to existing literature and policy implications for developing countries seeking to attract and leverage FDI for sustainable economic growth. Finally, chapter five offers a conclusion and summary of the thesis, summarizing the main findings, implications, and recommendations for future research and policy action. The study contributes to the understanding of the role of FDI in driving economic growth in developing countries and provides valuable insights for stakeholders seeking to harness the potential benefits of FDI for sustainable development.

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. Foreign direct investment is considered a crucial factor in promoting economic development by bringing in capital, technology, and expertise to the host country. Developing countries often rely on FDI to bridge the investment gap, stimulate industrialization, and create employment opportunities. The research will delve into the theoretical framework surrounding FDI and economic growth, examining various economic theories and models that explain the potential impact of foreign investment on host economies. This will provide a comprehensive understanding of the mechanisms through which FDI can contribute to economic growth in developing countries. The study will also analyze empirical evidence from existing literature on the subject, exploring case studies and statistical data to assess the actual impact of FDI on economic indicators such as GDP growth, employment rates, and productivity levels. By synthesizing and critically evaluating previous research findings, the project aims to identify patterns, trends, and inconsistencies in the relationship between FDI and economic growth. Methodologically, the research will employ quantitative analysis techniques to examine the relationship between FDI inflows and economic growth indicators in a sample of developing countries. Data will be collected from reputable sources such as the World Bank, United Nations, and other relevant databases to conduct regression analysis and statistical tests to measure the significance and magnitude of the impact of FDI on economic growth. The findings of this study are expected to contribute to the existing body of knowledge on the subject by providing empirical insights into the relationship between FDI and economic growth in developing countries. The research outcomes will have implications for policymakers, investors, and other stakeholders interested in understanding the dynamics of FDI and its potential effects on host economies. Overall, the project on "The Impact of Foreign Direct Investment on Economic Growth in Developing Countries" seeks to deepen our understanding of the role of FDI in driving economic growth and development in the context of developing countries, offering valuable insights that can inform policy decisions and strategic interventions aimed at fostering sustainable economic progress.