Show simple item record

dc.contributor.authorNjeru, Benedict N
dc.date.accessioned2013-11-12T07:34:53Z
dc.date.available2013-11-12T07:34:53Z
dc.date.issued2013-11
dc.identifier.citationDegree in Masters Of Science in Financeen
dc.identifier.urihttp://erepository.uonbi.ac.ke:8080/xmlui/handle/123456789/58592
dc.descriptionA research project submitted in partial fulfillment of the requirement for the award of the Master of Science in Finance Degree, University of Nairobien
dc.description.abstractThe general benefits of foreign direct investment (FDI) for emerging economies are well documented. Given the appropriate host-country policies and a basic level of development, various studies show that FDI results in technology spillovers, enables human capital formation, improves international trade integration, helps create a more competitive business environment and improves enterprise development. All of these result in higher economic growth, which is a crucial tool for alleviating poverty in developing countries. This study explores the impact of foreign direct investment on the Kenyan economy using FDI and GDP inflow data series from 1982 to 2012. The Statistical Package for Social Sciences was used to analyse the data where descriptive analyses, frequencies and trend analysis, as well as inferential analyses involving Analysis of Variance (ANOVA) and Correlation analysis to establish relationships between the variables. Graphical trend analysis of FDI and GDP reveals a direct positive relationship between the two variables. The Pearson correlation was computed for GDP and FDI inflow data series resulting in a correlation coefficient of 0.565 at the 0.001 (2 tailed) significance level which indicates a strong positive correlation between the variables; this in turn means that there is a significant direct proportional relationship between foreign direct investment and economic growth in Kenya. These findings have led to the conclusion that the impact of foreign direct investment on the Kenyan economy is a positive one. As such, we can say that FDI promotes economic growth and suggest that the Kenyan government embrace policies that aim to attract more foreign direct investment while micro-managing the same to avoid the negative impacts of FDI on local firms such as crowding out.en
dc.language.isoenen
dc.publisherUniversity of Nairobien
dc.titleThe impact of foreign direct investment on economic growth in Kenyaen
dc.typeThesisen
local.publisherSchool of Businessen


Files in this item

Thumbnail

This item appears in the following Collection(s)

Show simple item record