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

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  • Adenaeuer, Lucie

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.

Suggested Citation

  • Adenaeuer, Lucie, 2012. "The Impact Of Foreign Direct Investment (Fdi) On The Future Sustainable Development Of Ethiopia," 52nd Annual Conference, Stuttgart, Germany, September 26-28, 2012 137162, German Association of Agricultural Economists (GEWISOLA).
  • Handle: RePEc:ags:gewi12:137162
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    References listed on IDEAS

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    1. Dollar, David & Kraay, Aart, 2002. "Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September.
    2. Borensztein, E. & De Gregorio, J. & Lee, J-W., 1998. "How does foreign direct investment affect economic growth?1," Journal of International Economics, Elsevier, vol. 45(1), pages 115-135, June.
    3. 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.
    4. Klein, Michael & Aaron, Carl & Hadjimichael, Bita, 2001. "Foreign direct investment and poverty reduction," Policy Research Working Paper Series 2613, The World Bank.
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    Keywords

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

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