Thesis Abstract

Abstract
Foreign Direct Investment (FDI) has been considered a crucial driver of economic growth in developing countries. This study aims to investigate the impact of FDI on economic growth in developing countries by analyzing the relationship between FDI inflows and various economic indicators. The research employs a quantitative research method and utilizes secondary data from reputable sources such as the World Bank and United Nations Conference on Trade and Development (UNCTAD). The study begins with a comprehensive review of existing literature on the subject to provide a theoretical framework for the research. The literature review explores the various theories and empirical studies that have examined the relationship between FDI and economic growth in developing countries. It also discusses the different channels through which FDI can influence economic growth, such as technology transfer, human capital development, and infrastructure improvement. The research methodology section outlines the data collection process, variables used in the analysis, and the econometric model employed to assess the impact of FDI on economic growth. The study considers factors such as trade openness, institutional quality, and financial development as control variables to ensure the robustness of the analysis. Findings from the empirical analysis reveal a positive correlation between FDI inflows and economic growth in developing countries. The results suggest that FDI has a significant impact on various economic indicators, including GDP growth, employment creation, and technological progress. Furthermore, the study identifies the importance of policy frameworks and institutional quality in enhancing the effectiveness of FDI in promoting economic growth. The discussion of findings delves into the implications of the results for policymakers and investors in developing countries. It highlights the need for conducive investment climates, sound macroeconomic policies, and regulatory frameworks to attract and maximize the benefits of FDI. The study also emphasizes the importance of sustainable development practices and social responsibility in FDI projects to ensure inclusive growth and poverty alleviation. In conclusion, this research contributes to the existing literature on the impact of FDI on economic growth in developing countries. It provides valuable insights for policymakers, investors, and academics seeking to understand the dynamics of FDI and its role in promoting sustainable economic development. The study underscores the potential of FDI as a catalyst for growth and emphasizes the importance of effective governance and policy coordination to harness its benefits fully.

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 nations. Foreign direct investment is a crucial driver of economic development as it brings in capital, technology, and expertise that can boost productivity and stimulate growth. This study seeks to provide a comprehensive analysis of how FDI impacts the economic growth of developing countries and the mechanisms through which this influence occurs. The research will begin with an introduction that sets the context for the study, highlighting the importance of FDI in the global economy and its significance for developing countries. The background of the study will provide a review of existing literature on the topic, outlining key theories and empirical findings related to FDI and economic growth. The problem statement will identify the gaps in the current research and the specific research questions that the study seeks to address. The objectives of the study will define the goals and aims of the research, while the limitations of the study will outline the constraints and challenges that may impact the findings. The scope of the study will delineate the boundaries of the research, specifying the countries and time periods that will be included in the analysis. The significance of the study will highlight the potential contributions of the research to the field of economics and policymaking, emphasizing the practical implications of the findings. The structure of the thesis will provide an overview of the organization of the research, outlining the chapters and sub-sections that will be included in the final document. Finally, the definition of terms will clarify key concepts and variables used in the study, ensuring a common understanding of the terminology. Overall, this research seeks to deepen our understanding of the impact of foreign direct investment on economic growth in developing countries and provide valuable insights for policymakers, investors, and academics interested in this important topic. By examining the mechanisms through which FDI influences economic growth, this study aims to contribute to the ongoing debate on the role of foreign investment in promoting sustainable development and prosperity in developing nations.