StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Premium+

To What Extent Does Inward Foreign Direct Investment Alleviate Poverty in Sub Saharan Africa - Dissertation Example

Cite this document
Summary
The paper "To What Extent Does Inward Foreign Direct Investment Alleviate Poverty in Sub Saharan Africa?"  utilizes evidence and factual data that FDI affects the economic growth of the host countries that in turn helps to reduce the poverty level in the SSA countries…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96.9% of users find it useful
To What Extent Does Inward Foreign Direct Investment Alleviate Poverty in Sub Saharan Africa
Read Text Preview

Extract of sample "To What Extent Does Inward Foreign Direct Investment Alleviate Poverty in Sub Saharan Africa"

Download file to see previous pages

Research that has studied the relationship between Foreign Direct Investment (FDI) and economic development using FDI and growth variables has shown mixed results. There is an extensive stream of research that argues that FDI effects can be unpredictable, unintended, and counterproductive, or even threatening (Mengistu, 2009). Conversely, other scholars show a strong, positive, and engaged stance with matters to do with development (Meyer, 2004).Although the literature on the effect of FDI on economic growth is abundant, literature on the effect of FDI on poverty is insufficient.

This is because the factors determining poverty in the Sub-Saharan African region are not homogeneous and have not been identified properly. Due to this, it has not been able to study the effect of FDI on these factors. This paper thus examines the relationship between inward FDI and poverty alleviation in Sub-Saharan Africa (SSA). Using the United Nations Development Program’s Human Development Index (HDI) and FDI net inflows as a percentage of Gross Domestic Product (GDP) as the primary variables, the analysis will confirm the positive and expectantly strong significant relationship between FDI net inflows and poverty reduction in SSA; a move towards achieving the eight Millennium Development Goals (MDGs) for 2015 outlined by The United Nations’ Millennium Declaration in 2000.

Poverty is a persistent problem in Sub-Saharan African countries. In order to carry out a study on the incidence of poverty and the ways to alleviate the problem, it is imperative to understand the way the term ‘poverty is redefined and the bearing it has on the people that are classified as poor. There are various ways in which poverty has been defined by different around the world. In general, the individuals that are identified as poor are “those people living in households in the lowest income quintile, when households are ranked by three-year average total per capita income” (Adams and He, 1995).

Two basic versions are generally used for the measurement of poverty in different countries. These are the poverty thresholds and the poverty guidelines. The Census Bureau issues the former and this measure is used for making statistical analysis of data related to poverty. The latter is issued by the Department of Health and Human Services.

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“To what extent does inward Foreign Direct Investment (FDI) alleviate Dissertation - 1”, n.d.)
Retrieved from https://studentshare.org/business/1484533-to-what-extent-does-inward-foreign-direct
(To What Extent Does Inward Foreign Direct Investment (FDI) Alleviate Dissertation - 1)
https://studentshare.org/business/1484533-to-what-extent-does-inward-foreign-direct.
“To What Extent Does Inward Foreign Direct Investment (FDI) Alleviate Dissertation - 1”, n.d. https://studentshare.org/business/1484533-to-what-extent-does-inward-foreign-direct.
  • Cited: 0 times

CHECK THESE SAMPLES OF To What Extent Does Inward Foreign Direct Investment Alleviate Poverty in Sub Saharan Africa

Chinese Foreign Direct Investment

The present essay "Chinese foreign direct investment" is focused on the Chinese contribution to the economics of Zambia.... tudy questions based on the above objectives, this research will seek to answer these research questions regarding the foreign direct investment of China in Zambian Mining firms.... ) What is the impact of the Chinese foreign direct investment on the performance of the Mining firms in Zambia?... The general objective of the paper will be to find out whether Chinese foreign direct investments could lead to the long-term economic growth of Zambia....
13 Pages (3250 words) Research Paper

To What Extent Does Inward Foreign Direct Investment Alleviate Poverty in Sub Saharan Africa

to what extent does inward foreign direct investment (FDI) ALLEVIATE POVERTY IN SUB SAHARAN AFRICA (SSA) Supervisor: Institution of Affiliation: Date: to what extent does inward foreign direct investment (FDI) alleviate poverty in Sub Saharan Africa (SSA) Introduction Foreign Direct Investment (FDI) refers to the net inflows of investments to the business in an economy and these investments are generated by a company operating a business in another country.... Effects of inward foreign direct investment (FDI) In SSA Economy Positive Effects FDI flow has played significant roles of contributing to increased technology advancement, access to new technologies, the creation of new knowledge and the transfer of existing foreign technology (Asiedu, 2006, p....
25 Pages (6250 words) Essay

Inward Foreign Direct Investment in Sub Saharan Africa

Data Discussion The data collected at the beginning of this research sheds considerable light on the pattern of growth of the countries in the Sub-saharan region.... I have picked out six countries that have the highest GDP growth from among the fifty-two countries in the Sub-saharan region.... These factors also help in correlating the drivers of human development, and thus poverty alleviation in these countries.... This reveals that although GDP is commonly considered the measure of growth, for many developing countries it does not reflect the true level of development of the economy....
4 Pages (1000 words) Dissertation

Globalization and Worldwide Poverty

Academic analysis and pragmatic evidence result from the blend of contentions utilised in each sphere of study, one is if 1) growth is distribution neutral as asserted and 2) trade enhances growth, so much so that it can be claimed that 3) trade is helpful in order to alleviate poverty.... In several circumstances, especially africa, hostile and unfavourable developments made the problems worse.... Countries that have been able to assimilate are experiencing faster growth and reduced poverty....
34 Pages (8500 words) Dissertation

Washington Consensus and the IMF

he policies themselves were outlined by Williamson (2000) as the implementation of monetary discipline in terms of trade, redirection of public expenditure towards projects that could given high economic returns to the people as well as alleviate poverty (healthcare, education etc.... , a broader tax base, free floating interest rates, liberalized trade policies, creation of foreign investment opportunities, privatization of national enterprises, deregulation of the economy and the establishment of competitive exchange rates....
9 Pages (2250 words) Essay

Food Insecurity in Sub-saharan Africa

The paper "Food Insecurity in Sub-saharan africa" describes that Africa as a continent is worse hit by disease epidemics and these diseases can affect the U.... interests in Sub-saharan africa, and particularly, the East African region, these terrorist cells also have the capabilities to target the U.... Sub-saharan africa is the most hit by conflicts that can be associated with food insecurity.... In Sub-saharan africa, food insecurity has contributed to civil wars, communal conflicts, and democratic breakdowns1....
11 Pages (2750 words) Essay

The Post-Washington Consensus

In the paper 'The Post-Washington Consensus' the author discusses what is the theoretical underpinning of the Post-Washington Consensus.... In recent history, the capitalist world and the western world at large has been faced with several key issues like inflation.... ... ... ... The author states that from a technical viewpoint, the term 'Washington Consensus' is a name given to the policies which were suggested by Washington based institutes to the Latin American countries in order to bring up and improve their economies....
12 Pages (3000 words) Assignment

Small business in Sub-Saharan Africa

Providing Microsoft's Security Essentials program is merely a part of a broader initiative aimed at supporting small businesses in Sub-saharan africa.... n February, 2011, IBM announced its decision to provide africa's small businesses, including those in Ethiopia, with free antivirus software (Tadesse 2011).... Difficult economic situation and the lack of investment opportunities further complicate the situation....
9 Pages (2250 words) Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us