Implementation of Manufacturing Foreign Direct Investment in Ethiopia: The Case of Addis Ababa City Administration and Oromia National Regional State

Negash, Getahun (2014) Implementation of Manufacturing Foreign Direct Investment in Ethiopia: The Case of Addis Ababa City Administration and Oromia National Regional State. Masters thesis, Addis Ababa University.

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Abstract

Many developing countries are competing to attract foreign direct investment with a belief that it can be a tool for development. The Ethiopian government has opened several economic sectors to foreign investors and issued several investment incentives for foreign investors. Since the market oriented economic reform took place in 1992, emphasis has been given to attracting FDI. In this study, implementation of manufacturing foreign direct investment is analyzed using the case of Addis Ababa City Administration and Oromia National Regional State. The study is based on both primary and secondary data from investors, professional experts, Government officials and local administration of the investment areas, the Ethiopian Investment Agency, UNCTADs database and the World Bank’s world development indicators. The period covered in the study is from 2004 to 2013. The results show that the implementation of FDI has been very low. This may be due to the administrative problem of investment facilitation, provision of land, provision of power supply, and provision of finance, underdevelopment of human capital, low performance of governmental institutions to facilitate investment services, and corruption. The fact that implementation of FDI is low, these has an important implication for policy makers, especially trade and FDI policies must be checked closely in order to make FDI growth enhancing in Ethiopia. The profitability of any FDI to a given host country depends on that respective country’s government role in the overall management of the sector. Finally, the study concludes by providing certain necessary suggestions that may help the government to get due benefits from FDI in manufacturing industries and consequently address some challenges that hampered the process of the implementation and thus strengthen the prospects of foreign direct investment in manufacturing investments.

Item Type: Thesis (Masters)
Subjects: J Political Science > JA Political science (General)
Divisions: Africana
Depositing User: Emmanuel Ndorimana
Date Deposited: 11 Jun 2018 10:11
Last Modified: 11 Jun 2018 10:11
URI: http://thesisbank.jhia.ac.ke/id/eprint/4323

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