The impact of foreign direct investment on economic growth in developing countries.

Thesis Abstract

Abstract
This thesis investigates the impact of foreign direct investment (FDI) on economic growth in developing countries. The study aims to provide a comprehensive analysis of the relationship between FDI inflows and the economic performance of developing nations. The research is motivated by the growing interest in FDI as a key driver of economic development and the varying impacts it has on the growth trajectories of different countries. The study focuses on exploring the mechanisms through which FDI influences economic growth and identifying the factors that mediate this relationship. The introductory chapter provides a background to the study, highlights the problem statement, outlines the objectives, discusses the limitations and scope of the study, underscores the significance of the research, and presents the structure of the thesis. The literature review chapter critically examines existing studies on FDI and economic growth, highlighting key theories, empirical findings, and debates in the field. The theoretical framework is based on the eclectic paradigm and endogenous growth theories, which provide a solid foundation for analyzing the relationship between FDI and economic growth. The research methodology chapter details the research design, data collection methods, sample selection, and analytical techniques employed in the study. The empirical analysis chapter presents the findings from the data analysis, including regression results, hypothesis testing, and discussions on the impact of FDI on economic growth indicators such as GDP growth, employment, technology transfer, and productivity enhancement. The chapter also explores the role of host country characteristics, institutional quality, and policy environment in shaping the effects of FDI on economic growth. The conclusion chapter summarizes the key findings of the study, discusses the implications for policy and practice, and identifies avenues for further research. The study contributes to the existing literature by providing new insights into the complex relationship between FDI and economic growth in developing countries. The findings have important implications for policymakers, investors, and other stakeholders interested in fostering sustainable economic development through FDI inflows. Overall, this research enhances our understanding of the dynamics of FDI and its impact on economic growth, offering valuable insights for future research and policy formulation.