Thesis Abstract

Abstract
Foreign direct investment (FDI) has been a key driver of economic growth in developing countries, attracting significant attention from policymakers, researchers, and investors alike. This thesis examines the impact of FDI on economic growth in developing countries, with a specific focus on exploring the mechanisms through which FDI influences economic development. The study employs a mixed-methods approach, combining quantitative analysis of macroeconomic data with qualitative insights from case studies of selected developing countries. The introductory chapter provides a comprehensive overview of the research topic, outlining the background, problem statement, objectives, limitations, scope, significance, and structure of the thesis. The chapter also defines key terms to establish a common understanding of the concepts under investigation. Chapter two presents a detailed literature review that synthesizes existing research on the relationship between FDI and economic growth in developing countries. The review analyzes various theoretical frameworks and empirical findings to identify the key factors influencing this relationship, such as technology transfer, human capital development, market access, and spillover effects. Chapter three outlines the research methodology employed in the study, including data collection methods, analytical techniques, and case study selection criteria. The chapter also discusses the limitations and ethical considerations of the research design to ensure the validity and reliability of the findings. Chapter four presents the empirical findings of the study, highlighting the diverse impacts of FDI on economic growth in developing countries. The analysis reveals the positive effects of FDI on GDP growth, employment creation, technology diffusion, and infrastructure development, while also identifying potential challenges and risks associated with FDI inflows. The concluding chapter summarizes the key findings of the study and offers policy recommendations for enhancing the positive impact of FDI on economic growth in developing countries. The thesis concludes with a reflection on the implications of the research findings and suggestions for future research directions in this important field of study. Overall, this thesis contributes to the existing literature on FDI and economic growth by providing a nuanced understanding of the complex relationship between these variables in the context of developing countries. The findings offer valuable insights for policymakers, investors, and researchers seeking to promote sustainable economic development through effective FDI strategies.

Thesis Overview

The research 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 refers to the investment made by a firm or individual in one country in business interests in another country, in the form of establishing business operations or acquiring business assets in the foreign country. The significance of this study lies in the understanding of how FDI can influence economic growth in developing countries, which are often seeking ways to boost their economies and improve the living standards of their populations. FDI is seen as a key driver of economic development, as it can bring in capital, technology, management expertise, and access to new markets, all of which can contribute to economic growth. The study will begin with an introduction that provides an overview of the research topic, followed by a background of the study that discusses the importance of FDI in the context of economic growth in developing countries. The problem statement will highlight the gaps in existing literature and the need for further research in this area. The objectives of the study will be clearly defined to outline the specific aims and goals of the research. The limitations of the study will also be acknowledged to provide a realistic view of the scope of the research. The scope of the study will be outlined to clarify the boundaries and focus of the research, while the significance of the study will emphasize the potential impact and contributions of the findings. The structure of the thesis will be presented to provide a roadmap of how the research will be organized and conducted. Definitions of key terms and concepts will be provided to ensure clarity and understanding throughout the study. The literature review will delve into existing research and theories on the relationship between FDI and economic growth, highlighting key studies, findings, and debates in the field. This section will provide a comprehensive overview of the current state of knowledge and identify gaps that the current research aims to address. The research methodology section will outline the research design, data sources, sampling techniques, and analytical methods that will be employed in the study. This section will detail how the research aims and objectives will be achieved and how data will be collected and analyzed. The discussion of findings chapter will present the results of the analysis, interpreting the data and discussing the implications for the relationship between FDI and economic growth in developing countries. This chapter will provide insights into the mechanisms through which FDI can impact economic growth and the specific contexts in which these effects are observed. Finally, the conclusion and summary chapter will bring together the key findings of the research, highlighting the main contributions to the field and offering recommendations for policy and future research. This section will provide a comprehensive overview of the research findings and their implications for theory and practice in the context of FDI and economic growth in developing countries. Overall, this research project seeks to deepen our understanding of the impact of foreign direct investment on economic growth in developing countries, shedding light on the mechanisms through which FDI can drive economic development and offering insights for policymakers, investors, and researchers in this field.