Thesis Abstract

Abstract
Foreign Direct Investment (FDI) has been recognized as a critical driver of economic growth in developing countries. This thesis aims to investigate the impact of FDI on economic growth in developing countries, focusing on the various mechanisms through which FDI affects economic development. The study examines the theoretical foundations of FDI and economic growth, reviews existing literature on the subject, and conducts empirical analysis to draw conclusions. The introductory chapter provides background information on the importance of FDI in economic development, highlights the problem statement, objectives, limitations, scope, significance, structure of the thesis, and defines key terms used in the study. Chapter two presents a comprehensive literature review covering ten key aspects related to FDI and economic growth, including theories, empirical studies, and policy implications. Chapter three outlines the research methodology employed in the study, detailing the research design, data collection methods, sample selection, and analytical techniques. The chapter further discusses the variables used in the analysis and justifies the chosen methodology. Chapter four presents a detailed discussion of the findings, analyzing the impact of FDI on economic growth in developing countries based on the empirical results. The study reveals that FDI inflows have a significant positive effect on economic growth in developing countries, stimulating investment, technology transfer, job creation, and export diversification. However, the impact of FDI varies across countries and sectors, influenced by factors such as institutional quality, human capital, infrastructure, and government policies. The findings underscore the importance of creating a conducive environment for FDI to maximize its benefits for economic development. In the concluding chapter, the thesis summarizes the key findings, discusses the implications for policymakers, and offers recommendations for enhancing the positive impact of FDI on economic growth in developing countries. The study contributes to the existing literature by providing empirical evidence and insights into the relationship between FDI and economic growth, offering valuable implications for future research and policy formulation in developing economies. Keywords Foreign Direct Investment, Economic Growth, Developing Countries, Investment, Technology Transfer, Policy Implications.

Thesis Overview

The research project titled "The Impact of Foreign Direct Investment on Economic Growth in Developing Countries" aims to explore the relationship between foreign direct investment (FDI) and economic growth in developing nations. Foreign direct investment is considered a crucial driver of economic development, particularly in developing countries where access to capital and technology is limited. This study seeks to analyze how FDI inflows impact various aspects of economic growth, such as GDP growth, employment, and productivity in developing economies. The research will begin with an introduction to the topic, providing background information on the importance of FDI in economic development and outlining the problem statement that this study seeks to address. The objectives of the study will be clearly defined, highlighting the specific goals and research questions that will guide the investigation. The limitations and scope of the study will also be outlined to provide a clear understanding of the research boundaries. The significance of the study lies in its potential to contribute to the existing body of knowledge on the impact of FDI on economic growth in developing countries. By providing a comprehensive analysis of this relationship, the research aims to offer valuable insights for policymakers, investors, and other stakeholders interested in promoting sustainable economic development in developing nations. The structure of the thesis will be outlined, detailing the organization of the chapters and the flow of the research. The methodology chapter will describe the research design, data sources, and analytical techniques that will be used to examine the impact of FDI on economic growth. The literature review will provide a comprehensive overview of existing research on FDI and economic growth, highlighting key findings and gaps in the literature. The discussion of findings chapter will present the results of the analysis, examining the relationship between FDI inflows and economic growth indicators in developing countries. The conclusions drawn from the research will be summarized in the final chapter, highlighting the implications of the findings and suggesting areas for further research. Overall, this research project seeks to shed light on the complex relationship between foreign direct investment and economic growth in developing countries, offering valuable insights that can inform policy decisions and promote sustainable development in these nations.