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The Impact Of Foreign Direct Investment (Fdi) On The Future Sustainable Development Of Ethiopia

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  • Adenaeuer, Lucie
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    Abstract

    In the light of recent strong global increases of Foreign Direct Investments (FDI), Ethiopia is one of the developing countries having received high FDI inflows in its agribusiness sector especially since 2006. As the agribusiness sector is the base of the Ethiopian economy these increases may considerably influence the total economy. This study aims at giving a first insight of possible midterm impacts of the FDI inflows on the sustainable development of Ethiopia. By analysing former empirical studies, likely future trends of development are derived. It is estimated that the high FDI inflows currently have and in the future continue to have a positive impact on the economic growth and poverty reduction. However, scarcity of agricultural land and water and corresponding environmental problems are bound to increase if no new production technologies and sufficiently strong regulatory frameworks are implemented.

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    Bibliographic Info

    Paper provided by German Association of Agricultural Economists (GEWISOLA) in its series 52nd Annual Conference, Stuttgart, Germany, September 26-28, 2012 with number 137162.

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    Date of creation: 2012
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    Handle: RePEc:ags:gewi12:137162

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    Keywords: Foreign direct investment; Ethiopia; sustainable development; Agribusiness sector; Agribusiness; International Development;

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    1. Ann E. Harrison & Brian J. Aitken, 1999. "Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela," American Economic Review, American Economic Association, vol. 89(3), pages 605-618, June.
    2. Eduardo Borensztein & Jose De Gregorio & Jong-Wha Lee, 1995. "How Does Foreign Direct Investment Affect Economic Growth?," NBER Working Papers 5057, National Bureau of Economic Research, Inc.
    3. Klein, Michael & Aaron, Carl & Hadjimichael, Bita, 2001. "Foreign direct investment and poverty reduction," Policy Research Working Paper Series 2613, The World Bank.
    4. Dollar, David & Kraay, Aart, 2001. "Growth is good for the poor," Policy Research Working Paper Series 2587, The World Bank.
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