Thesis Abstract

Abstract
This thesis examines the impact of foreign direct investment (FDI) on economic growth in developing countries. Foreign direct investment is increasingly recognized as a critical driver of economic development, particularly in developing countries where capital and technology transfers from foreign investors can stimulate growth and enhance productivity. The study focuses on analyzing the relationship between FDI inflows and economic growth in a sample of developing countries over a specific period. The research methodology involves a comprehensive literature review to examine existing theories and empirical studies on the topic. The study employs quantitative analysis to investigate the impact of FDI on economic growth using panel data analysis techniques. The dataset includes key variables such as FDI inflows, economic growth indicators, and control variables to capture the diverse factors that influence the relationship between FDI and economic growth. The findings suggest that foreign direct investment has a significant and positive impact on economic growth in developing countries. The results indicate that FDI inflows contribute to higher GDP growth rates, increased investment levels, and technological advancements in the host countries. However, the study also identifies some limitations and challenges associated with FDI, including issues related to governance, regulatory frameworks, and absorptive capacity. The implications of the study are crucial for policymakers, investors, and other stakeholders in developing countries. Understanding the dynamics of FDI and its impact on economic growth can help governments formulate effective policies to attract and maximize the benefits of foreign investment. The study underscores the importance of creating a conducive environment for FDI, promoting technology transfer, and enhancing local capabilities to leverage the potential benefits of foreign direct investment. In conclusion, this thesis contributes to the existing literature on FDI and economic growth in developing countries by providing empirical evidence of the positive impact of foreign investment on economic development. The findings highlight the potential of FDI to drive growth, create employment opportunities, and foster innovation in developing economies. The study recommends further research to explore the specific mechanisms through which FDI influences economic growth and to address the challenges associated with maximizing the benefits of foreign direct investment in developing countries.

Thesis Overview

The research project titled "The Impact of Foreign Direct Investment on Economic Growth in Developing Countries" seeks to investigate the relationship between foreign direct investment (FDI) and economic growth in developing countries. Foreign direct investment plays a crucial role in the economic development of nations, especially in developing countries where capital inflows can bring about significant positive impacts on various sectors of the economy. This study aims to provide a comprehensive analysis of how FDI influences economic growth in developing countries, taking into consideration the unique characteristics and challenges faced by these nations. The research will begin with a thorough introduction that sets the stage for the study, providing background information on the importance of FDI in driving economic growth and development. The problem statement will highlight the existing gaps in the literature regarding the specific impact of FDI on economic growth in developing countries, laying the foundation for the research objectives. The objectives of the study will focus on examining the relationship between FDI and economic growth, identifying the key determinants that influence this relationship, and analyzing the mechanisms through which FDI affects different sectors of the economy. The study will also acknowledge the limitations that may arise during the research process, such as data availability constraints and methodological challenges. The scope of the study will define the boundaries within which the research will be conducted, specifying the countries and time period under consideration. The significance of the study will be highlighted, emphasizing the potential contributions to the existing body of knowledge on FDI and economic growth in developing countries. The structure of the thesis will outline the organization of the research, detailing the chapters and subchapters that will be included in the study. A comprehensive definition of key terms and concepts related to FDI and economic growth will be provided to ensure clarity and understanding throughout the thesis. Chapter two will consist of a detailed literature review that examines existing studies and theories on the impact of FDI on economic growth in developing countries. This chapter will provide a theoretical framework for the research, synthesizing key findings and identifying gaps in the literature that the current study aims to address. Chapter three will focus on the research methodology, outlining the research design, data sources, sampling techniques, and analytical methods that will be employed to investigate the research questions. This chapter will also discuss the limitations of the chosen methodology and address potential biases that may affect the study outcomes. Chapter four will present the findings of the research, analyzing the empirical data to assess the impact of FDI on economic growth in developing countries. The discussion will delve into the specific mechanisms through which FDI influences different sectors of the economy, highlighting the positive and negative effects observed in the study. Chapter five will provide a conclusion and summary of the research findings, outlining the key implications for policymakers, investors, and other stakeholders interested in promoting economic growth through FDI in developing countries. Recommendations for future research will also be discussed, highlighting areas that require further investigation to enhance our understanding of the complex relationship between FDI and economic growth in developing countries. Overall, this research project aims to contribute valuable insights to the existing literature on FDI and economic growth, shedding light on the opportunities and challenges faced by developing countries in attracting and maximizing the benefits of foreign investment for sustainable economic development.