| dc.description.abstract | Foreign Direct Investment (FDI) stock to Africa and its sub-region has increased steadily
since J980 but East African Community (EAC) has recorded the least increment. These
insights therefore prompted this empirical study to investigate the determinants of FDI in
East African Community's jive countries i.e. Kenya Uganda, Tanzania, Rwanda and
Burundi, to jind out why is the region recording very low increase of FDI. The study
employed panel data analysis methods. The study used trade openness, Gross Domestic
Product growth, Gross Domestic Product per Capita, telephone line (per J 00 people); a
proxy for infrastructural facilities, inflation, return on investment and natural resource
endowment as explanatory variables and the stock of FDI as dependent variable. The
analyzed data covered the period J99J-20J2. The study finding showed that trade
openness, inflation, and infrastructure facilities were the most significant determinants of
foreign direct investment to EAC countries. Therefore, the study recommended that EAC
countries should put in place policies that aim at controlling inflation, liberalization of
economies to make entry offoreign investors easy and rehabilitation and development 0/
new infrastructure facilities. Having such policies in place, FDI to the region will
improve and these countries will reap the benejits associated with increased FDI. | en_US |
