Thesis Abstract

Abstract
Foreign Direct Investment (FDI) plays a significant role in the economic development of developing countries by providing capital, technology transfer, and access to new markets. This study investigates the impact of FDI on economic growth in developing countries, focusing on the key factors that influence this relationship. The research utilizes a mixed-methods approach, combining quantitative analysis of macroeconomic data with qualitative insights from case studies of selected developing countries. The introductory chapter provides an overview of the research, including the background of the study, problem statement, objectives, limitations, scope, significance, and the structure of the thesis. Chapter two presents a comprehensive literature review, analyzing existing research on FDI and economic growth in developing countries, highlighting the various theories and empirical findings in this area. Chapter three outlines the research methodology, detailing the data sources, variables, and analytical techniques used in the study. The chapter includes discussions on the research design, sampling methods, data collection procedures, and statistical analysis techniques employed to investigate the impact of FDI on economic growth. Chapter four presents the findings of the study, analyzing the relationship between FDI inflows and economic growth in developing countries. The chapter provides empirical evidence on the positive impact of FDI on key economic indicators such as GDP growth, employment, and technological innovation. Additionally, the chapter explores the role of government policies, institutional factors, and sectoral dynamics in shaping the FDI-economy relationship. The concluding chapter summarizes the key findings of the study, highlighting the implications for policymakers, investors, and other stakeholders in developing countries. The research underscores the importance of attracting FDI through conducive investment climates, effective governance structures, and targeted sectoral policies to maximize the benefits of foreign capital inflows for sustained economic growth. Overall, this study contributes to the existing literature on FDI and economic growth in developing countries by providing empirical insights and policy recommendations to enhance the positive impact of FDI on economic development. The findings of this research have implications for future studies, as well as practical implications for policymakers seeking to leverage FDI for sustainable economic growth in developing countries.

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 a critical source of external finance for developing countries and plays a significant role in driving economic growth, technology transfer, job creation, and overall development. Understanding the impact of FDI on economic growth is essential for policymakers, investors, and researchers to make informed decisions and strategies. The research will focus on exploring the various channels through which FDI influences economic growth in developing countries. This will involve analyzing the direct effects of FDI on key economic indicators such as GDP growth, employment rates, productivity, and trade balance. Additionally, the study will examine the indirect effects of FDI on economic growth through technology spillovers, human capital development, and infrastructure improvement. A comprehensive review of existing literature on FDI and economic growth will provide a theoretical foundation for the research. This literature review will cover studies that have investigated the impact of FDI on economic growth in different countries and regions, highlighting the varying results and methodologies used. By synthesizing and analyzing this body of research, the study aims to identify common trends, gaps in knowledge, and areas for further exploration. The research methodology will involve collecting and analyzing data from various developing countries to assess the relationship between FDI and economic growth. Quantitative analysis techniques such as regression analysis and econometric modeling will be employed to examine the causal link between FDI inflows and economic growth indicators. The study will also consider qualitative factors such as institutional quality, government policies, and market conditions that may influence the impact of FDI on economic growth. The findings of the research are expected to provide valuable insights into the role of FDI in promoting economic growth in developing countries. By identifying the mechanisms through which FDI affects economic outcomes, the study will offer practical recommendations for policymakers, investors, and other stakeholders to maximize the benefits of FDI for sustainable development. The research outcomes will contribute to the existing body of knowledge on FDI and economic growth, informing future research and policy decisions in the field of international economics and development.