Thesis Abstract

Abstract
Foreign Direct Investment (FDI) plays a crucial role in shaping the economic landscape of developing countries. This study aims to investigate the impact of FDI on economic growth in developing countries, focusing on the key mechanisms through which FDI influences economic performance. The research employs a mixed-methods approach, combining quantitative analysis and qualitative insights to provide a comprehensive understanding of the relationship between FDI and economic growth. The study begins with an exploration of the theoretical background of FDI and economic growth, examining existing literature to identify gaps and establish a theoretical framework for the research. Subsequently, a critical review of empirical studies on the topic is conducted to analyze the various ways in which FDI affects economic growth in developing countries. The literature review encompasses ten key themes, including the role of technology transfer, human capital development, and institutional quality in mediating the relationship between FDI and economic growth. In the research methodology section, the study outlines the research design, data collection methods, and analytical techniques employed to investigate the impact of FDI on economic growth. The methodological framework integrates quantitative analysis of macroeconomic data with qualitative insights from interviews with policymakers, industry experts, and academic scholars to provide a nuanced understanding of the dynamics at play. The findings of the study reveal that FDI inflows have a significant positive impact on economic growth in developing countries, particularly through technology spillovers, knowledge transfer, and the creation of employment opportunities. However, the effectiveness of FDI in promoting economic growth is contingent upon various factors, such as the quality of institutions, infrastructure, and human capital in the host country. The discussion of findings delves into the implications of the research results for policymakers, highlighting the importance of creating an enabling environment to attract and maximize the benefits of FDI for economic development. The study emphasizes the need for targeted policies to enhance absorptive capacity, promote innovation, and foster linkages between foreign investors and local firms to leverage the full potential of FDI for sustainable economic growth. In conclusion, this thesis underscores the multifaceted nature of the relationship between FDI and economic growth in developing countries, emphasizing the need for a holistic approach that takes into account the diverse channels through which FDI influences economic performance. The study contributes to the existing body of knowledge by offering new insights and policy recommendations to enhance the positive impact of FDI on economic growth in developing countries.

Thesis Overview

The research project titled "The Impact of Foreign Direct Investment on Economic Growth in Developing Countries" aims to investigate the influence of foreign direct investment (FDI) on the economic growth of developing nations. This study recognizes the crucial role that FDI plays in the economic development of countries, particularly in the context of developing economies where capital inflows from foreign entities can significantly impact various aspects of the economy. The significance of this research lies in the fact that FDI has become a major driver of economic growth in many developing countries, attracting investments from multinational corporations seeking new markets and opportunities. By analyzing the relationship between FDI and economic growth, this study seeks to provide insights into how developing nations can effectively leverage foreign investments to stimulate economic development and improve living standards for their citizens. The research will begin with a comprehensive review of existing literature on FDI and economic growth, examining theoretical frameworks and empirical studies that have explored the link between these two variables. This literature review will serve as the foundation for the subsequent analysis and discussion of findings in the study. The methodology section of the research will outline the research design, data sources, and analytical techniques that will be employed to investigate the impact of FDI on economic growth in developing countries. This section will also detail the selection criteria for the countries to be included in the study and the variables that will be analyzed to assess the relationship between FDI inflows and economic growth indicators. The discussion of findings will present the results of the empirical analysis, highlighting the key findings and insights obtained from the data. This section will explore the relationship between FDI inflows and various economic indicators such as GDP growth, employment rates, and poverty levels, shedding light on the mechanisms through which FDI influences economic growth in developing countries. Finally, the conclusion and summary chapter will provide a synthesis of the research findings, discussing the implications of the results for policy and practice in developing countries. This section will also highlight the limitations of the study and suggest avenues for future research to further explore the complex dynamics of FDI and economic growth in the context of developing nations. Overall, this research project seeks to contribute to the existing body of knowledge on the impact of FDI on economic growth in developing countries, offering valuable insights for policymakers, investors, and researchers interested in understanding the role of foreign investments in driving economic development and prosperity in the global economy.