Thesis Abstract

Abstract
Foreign Direct Investment (FDI) plays a significant role in shaping the economic growth trajectory of developing countries by fostering capital inflows, technology transfer, and job creation. This study aims to analyze the impact of FDI on economic growth in developing countries through a comprehensive examination of the relationship between these two variables. The research employs a mixed-methods approach, combining quantitative analysis of macroeconomic data with qualitative insights from case studies of select developing countries. The study begins with an exploration of the theoretical framework underpinning the relationship between FDI and economic growth, highlighting key concepts such as capital accumulation, technology diffusion, and productivity enhancement. A critical review of existing literature provides insights into the various perspectives and empirical findings on the topic, setting the stage for the empirical analysis. Empirical analysis involves the use of econometric models to assess the impact of FDI on economic growth in developing countries. By analyzing relevant macroeconomic indicators and FDI inflows data, the study aims to quantify the extent to which FDI influences economic growth in different contexts. The findings from the quantitative analysis are supplemented with qualitative case studies that offer a nuanced understanding of the mechanisms through which FDI impacts economic growth. The research methodology includes data collection from reputable sources such as the World Bank and United Nations, as well as in-depth interviews with policymakers, industry experts, and academics in developing countries. The analysis is guided by a structured research framework that ensures rigor and validity in the investigation of the research question. The results of the study shed light on the complex relationship between FDI and economic growth in developing countries, highlighting the varied impacts of FDI across different sectors and regions. The findings provide valuable insights for policymakers, investors, and other stakeholders seeking to leverage FDI for sustainable economic development in developing countries. Overall, this thesis contributes to the existing body of knowledge on the role of FDI in shaping economic growth in developing countries, offering a nuanced understanding of the opportunities and challenges associated with FDI inflows. The findings have implications for policy formulation, investment promotion strategies, and future research directions in the field of international economics and development studies.

Thesis Overview

The research project titled "Analysis of 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. This study is motivated by the increasing importance of FDI as a source of capital inflow and its potential to drive economic development in developing nations. The research seeks to provide insights into how FDI affects various aspects of economic growth, such as GDP growth, employment generation, technology transfer, and overall economic performance. The project will employ a mix of quantitative and qualitative research methods to analyze the impact of FDI on economic growth. By examining existing literature on the subject and conducting empirical analysis using relevant data, the study aims to identify the key determinants and mechanisms through which FDI influences economic growth in developing countries. The research will also consider the role of government policies, institutional factors, and other contextual variables that may mediate the relationship between FDI and economic growth. One of the key objectives of the research is to provide policymakers, investors, and other stakeholders with evidence-based insights that can inform decision-making and policy formulation related to FDI inflows and their implications for economic development. By understanding the nuanced relationship between FDI and economic growth, developing countries can better harness the potential benefits of foreign investment while mitigating potential risks and challenges. Overall, this research project aims to contribute to the existing body of knowledge on the impact of FDI on economic growth in developing countries. By shedding light on the various dimensions of this complex relationship, the study seeks to provide valuable insights that can help guide future research, policy development, and investment strategies aimed at promoting sustainable economic growth and development in the developing world.