The Impact of Foreign Direct Investment on Economic Growth in Developing Countries: A Case Study Approach

Thesis Abstract

Abstract
Foreign Direct Investment (FDI) plays a crucial role in the economic growth and development of developing countries. This study investigates the impact of FDI on economic growth in developing countries through a comprehensive case study approach. By analyzing the relationship between FDI inflows and economic indicators in selected developing countries, this research aims to provide valuable insights into the mechanisms through which FDI influences economic growth. The study also considers the various factors that may mediate or moderate the relationship between FDI and economic growth, such as institutional quality, human capital, and technological spillovers. The research methodology involves a mixed-methods approach, combining quantitative analysis of macroeconomic data with qualitative case studies of specific developing countries. The quantitative analysis utilizes panel data regression techniques to examine the relationship between FDI inflows and economic growth indicators over time. The qualitative case studies provide a deeper understanding of the specific contexts in which FDI impacts economic growth in developing countries, highlighting the importance of factors such as governance, infrastructure, and industry composition. The findings of this study contribute to the existing literature on the impact of FDI on economic growth by offering a nuanced and context-specific analysis of the relationship in developing countries. The results highlight the significant positive effects of FDI on economic growth in certain developing countries, while also identifying potential challenges and limitations associated with FDI inflows. The study suggests that the effectiveness of FDI in promoting economic growth depends on a range of factors, including the quality of institutions, the level of human capital, and the absorptive capacity of the host economy. Overall, this research provides important insights into the role of FDI in driving economic growth in developing countries and offers practical implications for policymakers and investors seeking to maximize the benefits of FDI inflows. By understanding the mechanisms through which FDI influences economic growth and identifying the conditions under which it is most effective, this study contributes to the ongoing debate on the role of FDI in fostering sustainable development in developing countries. Keywords Foreign Direct Investment, Economic Growth, Developing Countries, Case Study, Institutional Quality, Human Capital, Technological Spillovers