Browsing by Author "Sommie, Mollalign"

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    Determinants of Foreign Direct Investment in Ethiopia:
    (Addis Ababa University, 2016-06) Sommie, Mollalign; Geda, Alemayehu (PhD)
    This paper attempts to examine the determinants of Foreign Direct Investment in Ethiopia. The study applies multivariate ordinary least square regression by using time series data covering over the period 1974 to 2015. The variables used in the study are market size, export orientation, inflation rate, exchange rate, infrastructure and human capital. The finding shows that market size in the form of real GDP per capita and infrastructure in the form of gross fixed capital formation have positive impacts while macroeconomic instability (both inflation and exchange rates), export orientation and illiteracy have negative impacts on FDI inflow to Ethiopia. On the other hand, from those variables exchange rate, illiteracy rate and export orientation affects FDI significantly while market size, infrastructure and inflation has insignificant effect on FDI inflow to Ethiopia. These findings imply that market size, infrastructure, the financial sector and the export sector should be improved by giving special attention. Key words: FDI, FDI determinants, time series, multivariate ordinary least square regression