Determinants of Foreign Direct Investment Inflow to Ethiopia: A Time Series Analysis
| dc.contributor.advisor | Mulugeta G/Mariam (PhD) | |
| dc.contributor.author | Yalew Mengistie | |
| dc.date.accessioned | 2024-02-27T11:54:44Z | |
| dc.date.available | 2024-02-27T11:54:44Z | |
| dc.date.issued | 2022-01 | |
| dc.description.abstract | The main aim of this paper is to identify the key determinant factors of FDI inflows to Ethiopia for the period 1991 to 2020 using autoregressive distributed lag model (ARDLM) with Error Correlation Methods. The empirical results reveal that trade openness, domestic market size, inflation rate, and political stability and absence of violence are the key determinant factors of FDI inflows to Ethiopia. Moreover, human capital and government effectiveness are also important determinant factors of FDI inflow in the short run, while infrastructure facility is a fundamental determinant factor in the long run. Among these factors, at 5% level of statistical significance, trade openness, and domestic market size affect FDI inflow positively both in the short run and long run, whereas inflation rate, and political stability and absence of violence have negative and statistically significant effect in both cases. On the other hand, government effectiveness and human capital associated with FDI inflow to Ethiopia positively in the short run. Besides, infrastructure facility development has statistically significant effect on FDI inflow in the long run. Hence, these findings implies that minimizing barriers to trade, improving domestic market size and infrastructure facilities, creating more stable macroeconomic and political environment, giving due attention to well-organized system of education, and having effective governance system are also crucial to attract more FDI to Ethiopia. Keywords: FDI, Ethiopia, Determinant, ARDL Model, Bound Test, ECM | |
| dc.identifier.uri | https://etd.aau.edu.et/handle/123456789/2046 | |
| dc.language.iso | en_US | |
| dc.publisher | Addis Ababa University | |
| dc.title | Determinants of Foreign Direct Investment Inflow to Ethiopia: A Time Series Analysis | |
| dc.type | Thesis |