Thesis Abstract

Abstract
This thesis investigates the impact of foreign direct investment (FDI) on economic growth in developing countries. The study is motivated by the increasing importance of FDI as a source of external finance for developing economies and its potential to drive economic growth and development. The research aims to provide a comprehensive analysis of the relationship between FDI and economic growth, considering various factors such as the level of FDI inflows, sectoral distribution, host country characteristics, and policy environment. The study begins with an introduction that outlines the background of the research, presents the problem statement, objectives, limitations, scope, significance, and structure of the thesis. The literature review in Chapter Two critically reviews existing studies on FDI and economic growth, focusing on theoretical frameworks, empirical evidence, and key debates in the field. The review highlights the diverse perspectives on the relationship between FDI and economic growth, providing a theoretical foundation for the empirical analysis. Chapter Three presents the research methodology used in the study, including the research design, data sources, variables, and analytical techniques. The methodology section outlines the empirical approach taken to analyze the impact of FDI on economic growth in developing countries, considering both cross-country and panel data analysis. Chapter Four presents the findings of the empirical analysis, exploring the relationship between FDI inflows and economic growth in a sample of developing countries. The results provide insights into the varying effects of FDI on different sectors of the economy, as well as the role of host country characteristics and policy environment in shaping the FDI-economic growth nexus. Finally, Chapter Five presents the conclusion and summary of the thesis, drawing key insights from the empirical analysis and discussing implications for policymakers, investors, and other stakeholders. The study contributes to existing literature by providing a nuanced understanding of the impact of FDI on economic growth in developing countries and suggesting policy recommendations to maximize the benefits of FDI for sustainable development. Overall, this thesis contributes to the ongoing debate on the role of FDI in promoting economic growth in developing countries, highlighting the complex and multifaceted nature of the relationship between FDI inflows and economic development. The findings of the study have implications for policymakers seeking to attract FDI, investors looking to maximize returns, and researchers interested in understanding the dynamics of FDI-led growth in developing economies.

Thesis Overview

The research project titled "Analysis of the Impact of Foreign Direct Investment on Economic Growth in Developing Countries" aims to provide a comprehensive analysis of the relationship between foreign direct investment (FDI) and economic growth in developing nations. Foreign direct investment plays a crucial role in the economic development of countries by stimulating growth, transferring technology and knowledge, creating job opportunities, and enhancing productivity. However, the impact of FDI on economic growth can vary depending on various factors such as the level of infrastructure, institutional quality, human capital, and macroeconomic stability in the host country. This study will delve into the existing literature on FDI and economic growth to identify the theoretical frameworks and empirical evidence supporting the positive or negative impact of FDI on economic growth in developing countries. By conducting a thorough literature review, this research aims to provide a solid foundation for understanding the mechanisms through which FDI influences economic growth and the key determinants that mediate this relationship. The research methodology will involve quantitative analysis using econometric techniques to examine the causal relationship between FDI inflows and economic growth in a sample of developing countries. The study will utilize panel data analysis to explore the short-term and long-term effects of FDI on economic growth, taking into account the heterogeneity across countries and time periods. Additionally, the research will investigate the role of various control variables such as trade openness, human capital, infrastructure development, and institutional quality in shaping the impact of FDI on economic growth. The findings of this research project will contribute to the existing body of knowledge on the relationship between FDI and economic growth in developing countries. By providing empirical evidence and insights into the determinants of this relationship, the study aims to offer valuable policy implications for policymakers, investors, and other stakeholders interested in fostering sustainable economic development through foreign direct investment. Ultimately, this research seeks to enhance our understanding of how FDI can be leveraged to promote economic growth and prosperity in developing nations.