Foreign Direct Investment, Economic Growth and Export in Ethiopia

The vast body of literature asserts that FDI helps to promote economic growth through various channels. However, mixed empirical evidences are prevalent contradicting these theoretical prescriptions making the role of FDI in promoting growth and curing development problems controversial. Such conflicting evidence is not exception to Ethiopian economy. Moreover, in Ethiopian context, studies on sectoral export versus FDI are also scanty. Therefore, the purpose of this research work is to study the relationships of FDI with real gross domestic product and export both at aggregate and sectoral level. The book has five chapters: the introductory chapter, review of related literature chapter, chapter three is about theoretical frame, methodology and data description, chapter four is the empirical analysis comprising descriptive, econometric, and causality relationship. The final chapter presents major findings and conclusions. The analyses inform the outcomes of FDI both at aggregate and sector level to policy makers and those working in the area; moreover, it is useful for professional and academic researchers to address FDI related policy issues through further studies.