FDI Implementation Challenges: in case of Ethiopian manufacturing industry
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Date
2020-02
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A.A.U
Abstract
The aim of this study was to investigate challenges facing foreign investors in implementing manufacturing FDI in Ethiopia. Descriptive research design was used. The target population comprised 493 foreign companies and 100 samples drawn. The non- probability sampling technique was used. The study used Questionnaires and interview to gather first-hand information from foreign investors, professional experts, and government officials. Accidental or convenience sampling technique was used to distribute questioners for foreign investors. In order to test the validity of the instrument, the pre-test was used. Data analysis and report of findings was done using descriptive statistics in the form of frequency tables, percentages, mean and standard deviation and the relationship of the elements was investigated using mean ranking. The findings of the study showed that fiscal policy, land related factors, market and product factors, and infrastructure factors are the major sources of challenges. The overall finding of this study suggests that implementation of manufacturing FDI have been very low. This may be due to poor coordination of governmental institutions for investment facilitation, poor provision of critical public utilities and services. The study concludes by providing certain necessary suggestions that may help in addressing implementation challenges.
The study recommends that There is a need for a much more specific, clear and transparent legal document especially the investment proclamations, regulations and directives need to be updated in line with technology changes, economic development, long term development planning. The Government through relevant ministries should further improve the country’s infrastructures, provisions of loans and foreign currency and allocation of land for the manufacturing sector to reduce the cost of doing business thereby reducing challenges
Description
A Thesis Submitted in Partial Fulfillment of the Requirements for the Degree of Master of Art in Business Administration
Keywords
Implementation, Manufacturing