Thesis Abstract

Abstract
Foreign Direct Investment (FDI) has been a significant driver of economic growth in developing countries, attracting attention from policymakers, economists, and researchers alike. This study aims to investigate the impact of FDI on economic growth in developing countries, focusing on the various channels through which FDI can contribute to economic development. Through a comprehensive literature review and empirical analysis, this research seeks to provide insights into the relationship between FDI and economic growth, considering both the positive and negative aspects of this relationship. The study begins with an introduction that sets the context for the research, highlighting the importance of FDI as a catalyst for economic growth in developing countries. The background of the study provides a historical overview of FDI trends and patterns in developing countries, laying the foundation for the subsequent analysis. The problem statement identifies the gaps in existing literature and the need for further research to understand the nuanced relationship between FDI and economic growth. The objectives of the study are to examine the impact of FDI on key economic indicators such as GDP growth, employment, and technology transfer, and to assess the implications of FDI for sustainable development in developing countries. The limitations of the study are acknowledged, including data constraints, methodological challenges, and the complexity of measuring the true impact of FDI on economic growth. The scope of the study encompasses a diverse range of developing countries, considering variations in economic structures, policy environments, and institutional frameworks. The significance of the study lies in its potential to inform policy decisions and development strategies aimed at maximizing the benefits of FDI for economic growth and poverty reduction in developing countries. The structure of the thesis is outlined, detailing the chapters that follow the introductory section. Chapter two presents a comprehensive literature review, analyzing existing studies on the relationship between FDI and economic growth, identifying key theoretical frameworks and empirical findings. Chapter three outlines the research methodology, including data sources, analytical techniques, and the variables used in the empirical analysis. Chapter four presents a detailed discussion of the findings, highlighting the key results and implications for policy and practice. The analysis considers the role of FDI in enhancing productivity, stimulating technological innovation, and promoting export-led growth in developing countries. The conclusion summarizes the main findings of the study, drawing out implications for future research and policy directions in the field of FDI and economic growth. In conclusion, this thesis contributes to the growing body of literature on the impact of FDI on economic growth in developing countries, shedding light on the mechanisms through which FDI can catalyze sustainable development. By providing a nuanced analysis of the benefits and challenges associated with FDI inflows, this research aims to inform evidence-based policy decisions and strategies to harness the potential of FDI for inclusive and equitable economic growth in developing countries.

Thesis Overview

The project titled "The Impact of Foreign Direct Investment on Economic Growth in Developing Countries" aims to explore the relationship between foreign direct investment (FDI) and economic growth in developing countries. FDI is recognized as a crucial driver of economic development, particularly in developing nations where it can bring in much-needed capital, technology, and expertise. However, the extent to which FDI positively impacts economic growth in these countries is not well understood and varies depending on a range of factors. The research will delve into existing literature to provide a comprehensive review of studies that have examined the impact of FDI on economic growth in developing countries. This review will highlight the various theoretical frameworks and methodologies used by researchers to analyze this relationship, as well as the key findings and trends that have emerged from previous studies. Furthermore, the project will present a detailed analysis of the research methodology employed to investigate the impact of FDI on economic growth. This will include a description of the data sources, variables, and analytical techniques used to assess the relationship between FDI inflows and economic growth indicators such as GDP growth, employment rates, and poverty levels in developing countries. The findings of the study will be discussed in depth, focusing on the empirical evidence regarding the impact of FDI on economic growth in developing countries. The analysis will consider both the positive and negative effects of FDI, as well as the mechanisms through which FDI can influence economic growth outcomes in these nations. Finally, the research will conclude with a summary of the key findings, implications, and recommendations for policymakers, investors, and other stakeholders interested in understanding the role of FDI in driving economic growth in developing countries. By shedding light on this critical relationship, the project aims to contribute valuable insights to the ongoing discourse on FDI and economic development in the global context.