Effects of FDI on Economic Growth in developing countries-Does it acceleratee economic growth in Tanzania- What lessons Tanzani.pdf

1、One of the striking features ofthe economies of poor countries in the past decades hasbeen the pervasive and vigorous attempt at promoting foreign direct investment. To poorcountries like Tanzania; FDI has been regarded

2、as key engine for fostering economic growth andtransformation of their economies. Regarding to this remark, the aim of this project was to assessthe impact of foreign direct investment in developing countries mainly Tanz

3、ania and use theresults obtained to recommend the way forward that would be adopted to foster the expectedbenefits from FDI.
　　 The evaluation of the FDI impacts in the economy of Tanzania was based on the selectedec

4、onomic indicators such gross domestic product growth rates, export and import data, currentaccount balances, balance of payments and gross fixed capital formation. Finally, the case studyof FDI in China is analysed where

5、 lessons were gathered for other developing countries includingTanzania would learn in order to improve the current performance of FDI their economies.
　　 In assessing the impact of FDI in Tanzania, the study shows t

6、hat FDI has not contributedmuch to the economic development ofthe country. Despite ofthe noted small economic impacts ofFDI in Tanzania, I am still convinced that FDI is an integral part of an open and effective internat

7、ionaleconomic system and important catalyst to country's development ifthe certain conditions are attained.There are several reasons for poor performance, mostly being poor infrastructures in most developingcountries.

8、>　　 Based on these results, the challenges confronting poor countries in attracting FDI havecontinued to become more onerous. These countries are now necessarily called upon to be morecreative and innovative in their st

9、rategies and methods in dealing with FDI to ensure broadlyexploiting their national distinctive advantages. Additionally, it is argued that less developedcountries need to leam from other countries such China that proved