| dc.description.abstract | Foreign Direct Investments (FDI) is defined as investment made to acquire lasting or long-term
interest in enterprises operating outside the economy of the investor while Economic Growth is
generally defined as an increase in the production and consumption of goods and services.
Among the key determinants of economic growth are most significantly, investments, then
international trade, human capital, innovation, research and development and economic policies.
Investments, in this case FDI, contributes to economic growth by injecting funds into an
economy, spurring increased production, skills enhancement, infrastructure development and
employment, all of which constitute economic growth.
The study sought to determine the effect of foreign direct investments on economic growth in
Kenya. A descriptive survey research design was employed for this study due to its
appropriateness in enabling description of characteristics of particular groups, estimation of
various proportions in these cohorts and its value in making predictions. Quantitative, secondary
data obtained from the Central Bank of Kenya, Kenya National Bureau of Statistics, United
Nations Conference on Trade and Development and World Bank databases were used based on
the information of the variables in use over a period of 31 years (1984-2014). The data was
analyzed through descriptive analysis and further through content analysis.
The findings of this study may be useful to future researchers on similar studies, scholars,
academicians and policy makers examining the effect of FDI on economic growth in Kenya and
possible ways of enhancing economic growth in the country. It was established that FDI, interest
rates, inflation rates and foreign exchange rates have a direct impact on economic growth in
Kenya, concluding that FDI positively affect Kenya‟s economic growth. The study recommends
implementation of feasible monetary and fiscal policies by the government and policymakers in
order to attract more FDI inflows into the country and achieve greater economic growth. | en_US |
