The relationship between Foreign Direct Investment (FDI) and economic growth in Kenya, Uganda and Tanzania
Abstract
Many developing countries continue to put in place policies that will attract Foreign
Direct Investments (FDI). Such policies are based on positive hopes that FDI enhances
economic growth. This study seeks to establish whether there is any relationship between
FDI and economic growth for Kenya, Uganda, and Tanzania. The study further seeks to
determine if the level of financial sector development influences such relationship.
Empirical analysis using data between 1991-2000 shows that FDI positively and directly
influences economic growth for Tanzania. No direct relationship between FDI and
economic growth were observed for Kenya and Uganda. The test for influence of
financial sector development on the FDII Growth relationship produced mixed results.
Citation
Masters Of Business Administration (MBA) Degree, University of NairobiPublisher
University of Nairobi School of Business
Description
A research project submitted in partial fulfilment of the requirements
for the award of Masters of Business Administration (MBA) Degree