Determinants of Foreign Direct Investment Inflow Performance in Ethiopia

Tigist Shumet

dc.contributor.author	Tigist Shumet
dc.date.accessioned	2020-09-23T06:30:58Z
dc.date.available	2020-09-23T06:30:58Z
dc.date.issued	2020-09
dc.identifier.uri	http://hdl.handle.net/123456789/11229
dc.description.abstract	Nowadays, the gap in savings of Ethiopia met through investments generated from development assistance and Foreign Direct Investment. Thus, the main aim of this study is to find out major determinants of Foreign Direct Investment (FDI) inflow performance in Ethiopia. In order to achieve this objective, the study used explanatory research design and quantitative research approach with secondary time series data utilized over the study period 1992-2019 (28 years). The study adopts an autoregressive distributed lag (ARDL) model by using E-views software. Furthermore, the long run relationships of variables were tested through bound test and the associated equilibrium correction was also significant, confirming the existence of long-run and short run relationship among variables. The finding of the study reveals that; market size or economic growth, inflation, political instability and illiteracy rate have negative relation with Foreign Direct Investment. On the other hand, except infrastructure which shows the insignificant result, the exchange rate and trade openness have a positive and significant relationship with foreign direct investment. In general, the study concludes that macro-economic, politicalinstitutional and human capital factors are major determinants that affect Foreign Direct Investment performance of Ethiopia. Conversely, infrastructural factors have low impact on Foreign Direct Investment. This study suggests that in making a policy arrangement, the government should have to take these variables into account in order to increase the country overall foreign direct investment performance.	en_US
dc.language.iso	en	en_US
dc.subject	ACCOUNTING AND FINANCE	en_US
dc.title	Determinants of Foreign Direct Investment Inflow Performance in Ethiopia	en_US
dc.type	Thesis	en_US