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