Foreign direct investment and local technological capabilities in least developed countries: some evidence from the Tanzanian manufacturing sector

Author(s):  
Bitrina Diyamett ◽  
Musambya Mutambla
2020 ◽  
Vol 2 (1) ◽  
pp. p15
Author(s):  
Yeboah Evans ◽  
Yu Jing

With regards to the ongoing development in investment activities in the Economic Community of West African States(ECOWAS) and the entire African continent is because of institutional reforms and initiation of sound investment policies. Foreign direct investment(FDI) inflow and outflow severs as a source of capital formation for most developing and least developed countries. This paper provides an overview and analyses of the flow of FDI to the ECOWAS region by considering 16 nations under this region in determining their performance towards FDI attraction and their contribution to outward FDI across the globe by the use of the quantitative method. The outcome shows that there is a continuous decline in FDI inflow to the ECOWAS region over the past 10 years. The result also proves that Ghana and Nigeria are the major recipients of foreign direct investment inflows in the West African region. The result further indicates that Nigeria is the major contributor of outward FDI from the ECOWAS region. It is recommended that the region should increase its outward FDI.


1979 ◽  
Vol 4 (3) ◽  
pp. 225-234
Author(s):  
Olukunle Iyanda

In recent years, many less developed countries have thrown open their doors to foreign investment in manufacturing. It is believed that, by producing goods locally which otherwise would have been imported, foreign exchange would be conserved. This paper analyses the balance of payments impact of foreign direct investment in the manufacturing sector of Nigeria's economy to determine whether it is cheaper to produce locally through foreign-owned firms or to use any other alternate means of supplying local demand.


F1000Research ◽  
2021 ◽  
Vol 10 ◽  
pp. 72
Author(s):  
Justice Gameli Djokoto

Background: Whilst the literature on the complementarity and substitutability of foreign direct investment (FDI) on domestic investment (DI) is not uncommon, the facet of food manufacturing is non-existent. This paper fills this void by investigating the effect of FDI on DI in the food manufacturing sector for developing, economies in transition and developed countries. Methods: Using an unbalanced panel data of 49 countries from 1993 to 2016, from FAOSTAT, estimated by the system generalised method of moments (GMM), the Wald statistics for the short and long-run effects of FDI on DI were computed for the development groups. Results: Developed economies experienced a crowd-out effect of FDI on DI in the short run, whilst the others experienced no significant effect. In the case of the long run, food manufacturing sectors of all three development groups exhibited a crowd-out effect. The effect in the long run for all development groups together is a crowd-in. Analysing all country groups together could mask the results of the various country groups. Conclusions: A review of investment policies to priorities FDI entry mode that favour domestic investment is needed. Improvement of the investment regulatory and administrative efficiency among others are recommended.


2016 ◽  
Vol 07 (03) ◽  
pp. 1650013 ◽  
Author(s):  
Sèna Kimm Gnangnon ◽  
Shishir Priyadarshi

This paper investigates the relationship between the diversification of export products in least developed countries (LDCs) and their services production and exports. It uses a dataset comprising 30 LDCs over the period 1995–2010. The empirical results suggest strong evidence that export product diversification in LDCs is a catalyzer for their commercial services exports, alongside factors such as per capita income, foreign direct investment (FDI), and regulatory quality policies. However, export products diversification does not appear to exert a significant effect on LDC services production. These findings have important implications for both the international trade community and LDC governments.


Author(s):  
Thaksin Phimpamot

In the article the inflow of foreign direct investment (FDI) into the economy of the Lao is examined, in particular, the evolution of the policy, methods and rules of FDI attraction and regulation, as well as the dynamics and sectoral structure of FDI inflows. In result of Lao’s targeted proactive government policy, the FDI inflow since 2005 have risen substantially, owing primarily to domestic and foreign investments in hydropower and mining. Since the 3rd five-year National Plan for 1991-1995, the promotion of FDI has become a priority for the government. Since 2005, the annual rate of economic growth has exceeded 5%, and by 2020, the poverty of the people has dropped significantly. Through continuous, inclusive and sustainable economic growth the country managed to get out of “least developed countries” status by 2020. The Lao PDR government continues to improve the legal framework and law enforcement practice in the field of FDI. China, Thailand and Vietnam lead the investment process among the 10 most active foreign investors. Lao government clearly defined the desirable industries for foreign direct investment, which meet national interests - hydropower, mining, infrastructure facilities, industrial and agricultural enterprises, tourism.  In this article an overview of the most important FDI sectors in Laos is provided. Authors have come to conclusion that the scope, volume and focus of implemented  and ongoing FDI projects has benefited the Laos in terms of socioeconomic growth, foreign exchange earnings, job creation, as well as modern equipment, technology and skills transfer. The attention of the Lao government to practical details of foreign investment in important national projects contributes to successful use of external resources for national goals.


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