Goshu PhD, AndualemDebele, Tilahun2019-10-292023-11-182019-10-292023-11-182019-06http://etd.aau.edu.et/handle/12345678/19697This study assesses the contribution of foreign direct Investment for regional economic development: In the case of Oromia regional state. A sample of 77 foreign companies and 406 respondents from the local community used as a primary source and secondary data obtained from the federal and Oromia bureaus were analyzed in the process of answering the basic questions. After the data has been collected, it was analyzed using linear regression and Descriptive statistical analysis. The result of the study indicates that there is a positive relationship between the regional economic growths Vs foreign direct investment and regional tax revenue Vs inflow of foreign direct investment. However, less positive correlation exhibited among the dependent and independent variables in both contexts. The job opportunities have been creating for the local community. However, in terms of the quality of the job they are very poor which characterized by poor payment and unskilled labor recruitment. The social development practice by the foreign companies in the region indicates that, they are actively participating in the provision of clean water for the local community. Regarding the human capital development, the study found that the foreign companies’ participation is minimal to zero. Based on the major findings the study forwarded recommendation for the foreign companies and for the regional government as well.enFDI Economic contribution in Oromia RegionThesis