Assessment of Foreign Direct Investment Entry Performances at Early Stages of Firm Establishments in Ethiopia
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Date
2022-04-03
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A.A.U
Abstract
This study tries to assess Foreign Direct Investment Entry Performances at Early Stages of Firm
Establishments in Ethiopia. The study used annual data of New FDI inflows and FDI entry
performances firms at establishment periods and data employed for the variables are from
period of 2011 to 2020. To analysis the Data, study used descriptive statistics. The study
employed five variables including dependent variable of new FDI entry performance and four
independent variables such as FDI under pre-implementation stage, FDI under implementation
stage, FDI under operational stage and FDI permits cancelled. The study concludes that from
the employed independent variables; highest mean registered by Foreign direct investment
entries under pre-implementation stage by Birr 27.12billion and followed by Foreign direct
investment entry permits cancelled Birr 12.4billion and highest standard deviation was
registered by Foreign direct investment entries under pre-implementation stage by Birr
30.27billion and followed by Foreign direct investment entry permits cancelled Birr 15.56billion
respectively. In the light of this, critical improvements are required in the areas of investment
statuses, particularly FDI implementation, operational stage and FDI permits cancellations. The
result of this paper demands policy intervention of government to make new FDI firms
achievements in reaching operational and production stages in order to improve entering FDI
firms’ performances and contribute for economic growth of the country.