Thesis Abstract

Abstract
This thesis examines the impact of foreign direct investment (FDI) on economic growth in developing countries. The study focuses on analyzing the relationship between FDI inflows and the economic growth of developing countries, with a particular emphasis on exploring the mechanisms through which FDI influences economic development. The research employs a mixed-methods approach, combining quantitative analysis of macroeconomic data with qualitative case studies to provide a comprehensive understanding of the topic. The introductory chapter sets the context for the study by outlining the background of the research, stating the problem statement, objectives of the study, limitations, scope, significance, structure of the thesis, and defining key terms. Chapter two conducts a thorough literature review covering ten key themes related to FDI and economic growth in developing countries. The review synthesizes existing research findings, identifies gaps in the literature, and sets the theoretical framework for the study. Chapter three details the research methodology, including research design, data collection methods, sampling techniques, variables selection, and analytical tools. The chapter also discusses the limitations of the methodology and ethical considerations. Chapter four presents the findings of the study, analyzing the impact of FDI on economic growth through empirical data and case studies. The chapter explores various channels through which FDI affects economic growth, such as technology transfer, human capital development, and export promotion. The conclusion chapter summarizes the key findings of the study, highlights the implications for policy and practice, and suggests avenues for future research. The study contributes to the existing literature on FDI and economic growth in developing countries by providing a nuanced analysis of the relationship between the two variables and offering insights into the factors that mediate this relationship. Overall, this thesis enhances our understanding of the role of FDI in driving economic growth in developing countries and provides valuable insights for policymakers, investors, and researchers in the field of international economics.

Thesis Overview

Research Overview: The 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. FDI is considered a crucial driver of economic development, especially in emerging economies, as it brings in capital, technology, and expertise that can stimulate growth and development. The research will focus on analyzing the various channels through which FDI influences economic growth in developing countries. This will involve examining the direct impact of FDI inflows on key economic indicators such as GDP growth, employment rates, and industrial output. Additionally, the study will explore how FDI affects factors such as technology transfer, human capital development, and productivity enhancement in the host countries. One of the key objectives of this research is to assess the effectiveness of FDI in promoting sustainable economic growth in developing countries. By analyzing data from a diverse set of developing economies, the study aims to provide insights into the conditions under which FDI can have the most significant positive impact on economic growth and development. Moreover, the research will also investigate the potential challenges and limitations associated with FDI in developing countries. This will include examining issues related to governance, regulatory frameworks, and the potential for FDI to crowd out domestic investment in certain sectors. By identifying these challenges, the study aims to provide recommendations for policymakers on how to maximize the benefits of FDI while mitigating its potential negative consequences. Overall, this research seeks to contribute to the existing literature on the impact of FDI on economic growth in developing countries. By providing a comprehensive analysis of the mechanisms through which FDI influences economic development, the study aims to offer valuable insights that can inform policy decisions and strategies aimed at promoting sustainable and inclusive economic growth in developing countries.