Foreign Direct Investment for Economic Development: Does foreign direct investment foster economic development in Angola and Mozambique?
Vakola, Pinja (2019)
2019
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2019052712267
https://urn.fi/URN:NBN:fi:amk-2019052712267
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The purpose of this research is to examine whether FDI fosters economic development in Angola and Mozambique. It identifies the main area of economic development and how that correlates to FDI spillovers.
Results indicate the right policy environment can boost the transfer of technology and know-how, while improving the competitive position of both the host and the home economy, through foreign direct investment. But the initial level of education and development in general is essential as for the ability to exploit FDI for development. Appropriate host-country policies and a basic level of development together with FDI assists human capital formation, contributes to international trade integration, helps create a more competitive business environment and enhances enterprise development.
The study indicates that FDI is associated with positive consequences under certain conditions. However, it isn’t a sufficient tool for solving economic development issues in developing countries, in particular Angola and Mozambique.
Results indicate the right policy environment can boost the transfer of technology and know-how, while improving the competitive position of both the host and the home economy, through foreign direct investment. But the initial level of education and development in general is essential as for the ability to exploit FDI for development. Appropriate host-country policies and a basic level of development together with FDI assists human capital formation, contributes to international trade integration, helps create a more competitive business environment and enhances enterprise development.
The study indicates that FDI is associated with positive consequences under certain conditions. However, it isn’t a sufficient tool for solving economic development issues in developing countries, in particular Angola and Mozambique.