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Foreign direct investment in Kenya

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  • Nyamwange, Mathew

Abstract

The purpose of this study is to identify the key factors that influence FDI decisions in Kenya and to explore the empirical relationship between FDI and economic growth in Kenya.The findings of the study reveal that the main determinants of FDI in Kenya are market size (proxied by GDP), stable macroeconomic policies and a level of human capital that is tolerable by investors.There is no significant relationship of human capital to overall economic growth which suggests that there is a shortage of skilled labour in the Kenya.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 34155.

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Date of creation: 02 Oct 2009
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Handle: RePEc:pra:mprapa:34155

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Keywords: Foreign Direct Investment in Kenya; Economic Growth in Kenya; FDI Kenya; Human Capital in Kenya; labour in kenya;

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  1. Aitken, Brian & Hanson, Gordon H. & Harrison, Ann E., 1997. "Spillovers, foreign investment, and export behavior," Journal of International Economics, Elsevier, vol. 43(1-2), pages 103-132, August.
  2. Magnus Blomstrom & Robert E. Lipsey & Mario Zejan, 1992. "What Explains Developing Country Growth?," NBER Working Papers 4132, National Bureau of Economic Research, Inc.
  3. Luiz de Mello, 1997. "Foreign direct investment in developing countries and growth: A selective survey," Journal of Development Studies, Taylor & Francis Journals, vol. 34(1), pages 1-34.
  4. Bengoa, Marta & Sanchez-Robles, Blanca, 2003. "Foreign direct investment, economic freedom and growth: new evidence from Latin America," European Journal of Political Economy, Elsevier, vol. 19(3), pages 529-545, September.
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