Thesis Abstract

Abstract
Foreign Direct Investment (FDI) has become a crucial driver of economic growth in developing countries. This research study aims to investigate the impact of FDI on economic growth in developing countries, focusing on the various channels through which FDI influences economic development. The study employs a mixed-methods approach, combining quantitative analysis of FDI inflows and economic growth indicators with qualitative insights from case studies of selected developing countries. Chapter One provides an introduction to the research topic, outlining the background of the study, problem statement, objectives, limitations, scope, significance, structure of the thesis, and definitions of key terms. The chapter sets the foundation for the research by highlighting the importance of FDI in the context of developing countries and the need to understand its impact on economic growth. Chapter Two presents a comprehensive literature review on the relationship between FDI and economic growth. The chapter examines existing theories and empirical studies on the subject, highlighting the various mechanisms through which FDI can contribute to economic development, such as technology transfer, human capital formation, and export promotion. The review also discusses the potential challenges and risks associated with FDI inflows in developing countries. Chapter Three details the research methodology employed in this study. It describes the research design, data sources, sampling techniques, and analytical tools used to investigate the impact of FDI on economic growth. The chapter also discusses the limitations and assumptions of the research methodology and justifies the chosen approach in addressing the research objectives. Chapter Four presents the findings of the research, analyzing the relationship between FDI inflows and economic growth in selected developing countries. The chapter examines the empirical evidence on the impact of FDI on key economic indicators, such as GDP growth, employment, productivity, and trade balance. It also discusses the heterogeneity of FDI effects across different sectors and regions within developing countries. Chapter Five concludes the thesis by summarizing the key findings, implications, and policy recommendations derived from the study. The chapter reflects on the research objectives and discusses the theoretical and practical implications of the findings for policymakers, investors, and other stakeholders in developing countries. Finally, the chapter outlines potential areas for future research and suggests ways to further enhance the understanding of the impact of FDI on economic growth in developing countries. In conclusion, this thesis contributes to the existing literature on the role of FDI in driving economic growth in developing countries. By combining quantitative analysis with qualitative insights, the study provides a holistic understanding of the mechanisms through which FDI can promote sustainable economic development in the context of 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 crucial component of the global economy, with developing countries often relying on FDI to boost their economic development. This research seeks to analyze how FDI inflows influence the economic growth of developing countries and the potential mechanisms through which this impact occurs. The study will begin by providing an introduction to the topic, discussing the background of the study to establish the context in which FDI operates in developing countries. The problem statement will highlight the significance of examining the impact of FDI on economic growth, while the objectives of the study will outline the specific goals and research questions that will guide the investigation. The limitations and scope of the study will be clearly defined to provide a framework for the research parameters. A comprehensive literature review will be conducted in Chapter Two to explore existing theories, empirical studies, and debates surrounding the relationship between FDI and economic growth in developing countries. This section will provide a critical analysis of the relevant literature to identify gaps in knowledge and inform the research methodology. Chapter Three will focus on the research methodology, detailing the research design, data collection methods, and analytical techniques that will be employed to investigate the impact of FDI on economic growth. The chapter will also discuss the selection of developing countries for the study and the rationale behind the chosen methodology. Chapter Four will present the findings of the research, analyzing the empirical data to assess the relationship between FDI inflows and economic growth in developing countries. The discussion will delve into the mechanisms through which FDI affects economic growth, considering factors such as technology transfer, human capital development, and productivity enhancement. Finally, Chapter Five will offer a conclusion and summary of the project thesis, highlighting the key findings, implications, and recommendations for policymakers, investors, and other stakeholders. The research overview will emphasize the importance of understanding the impact of FDI on economic growth in developing countries and suggest areas for further research to deepen our knowledge of this critical relationship.