Foreign Direct Investment and Ethiopian Economy :Determinant and Impact Analysis
| dc.contributor.advisor | Yitbarek, Takele (PhD) | |
| dc.contributor.author | Fitsum, Yohannes | |
| dc.date.accessioned | 2018-10-22T08:25:06Z | |
| dc.date.accessioned | 2023-11-19T09:08:11Z | |
| dc.date.available | 2018-10-22T08:25:06Z | |
| dc.date.available | 2023-11-19T09:08:11Z | |
| dc.date.issued | 2018-06 | |
| dc.description | A thesis submitted to college of business and economics In partial fulfillment of the requirement for the degree of Executive master of business administration (EMBA) | en_US |
| dc.description.abstract | Considering the empirical and literature debates and gaps on determinant and impact of FDI, the main objective of this study was to investigate the SR and LR determinants and impacts of FDI on the Ethiopian economy on real GDP, Domestic Investment, and Employment. The study used an Autoregressive Distributed Lag Model with a Bound Test for Co-integration in analyzing the multivariate time series data which covers from 1992-2017 in exploring the SR and LR relationship of the variables .Findings of the study for the determinants show, in the long run, domestic investment, exchange rate, trade openness and human capital have a positive relationship with FDI inflows. On the other hand, rate of inflation has a negative relationship with FDI. In the long run all variables are statistically significant except rate of inflation. In the short run, FDI inflow of the previous year has a negative and significant effect on FDI and lagged human capital and lagged trade openness are found positive and significant effect on the FDI inflow. Finding of the study for the impact shows, in the short run and long run FDI inflows have a positive impact on domestic investment and real GDP. The impact of FDI on employment is positive and highly significant in the long run although it is insignificant in the short run. The results in this study imply the need for proper management of the inflationary pressures on the economy which affects FDI inflows negatively. So, the nation’s monetary authorities develop and implement measures that will effectively manage all inflation, and sustained at levels that will guarantee increasing the level of inflow of FDI. | en_US |
| dc.identifier.uri | http://etd.aau.edu.et/handle/12345678/13046 | |
| dc.language.iso | en_US | en_US |
| dc.publisher | Addis Ababa University | en_US |
| dc.subject | Foreign Direct Investment | en_US |
| dc.subject | Ethiopian Economy | en_US |
| dc.title | Foreign Direct Investment and Ethiopian Economy :Determinant and Impact Analysis | en_US |
| dc.type | Thesis | en_US |