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An Assessment of Factors Affecting Foreign Direct Investment in Kenya [MBA Thesis]

An Assessment of Factors Affecting Foreign Direct Investment in Kenya [MBA Thesis] PDF Author:
Publisher:
ISBN:
Category :
Languages : en
Pages : 65

Book Description
The purpose of this study was to conduct an assessment of the factors that affect Foreign Direct Investments (FDI) in Kenya. The objectives of this study were to determine the existing barriers to making foreign direct investment in Kenya, to assess the existing potential risks to making foreign direct investment in Kenya and to assess the extent to which Kenyan labor force affects the foreign investment decisions of multinationals in Kenya. The design of the study was descriptive in nature. The research used both qualitative and quantitative data. The study focused on the population of 812 the multinational companies with offices in Nairobi, selected key informants from the Ministry of Foreign Affairs and Trade in Kenya and also key informants from the Development Partners. The study?s sample was 72 respondents from Multinational companies with offices in Nairobi, selected key informants from the Ministry of Foreign Affairs and Trade in Kenya and also key informants from the Development Partners. Structured questionnaires were used to gather information from key informants. The SPSS software was used to analyze the collected data to produce frequency distribution tables, mean and regression analysis of the dependent and independent variables. Regarding the barriers to making FDI in Kenya, the study revealed that generally Kenya did not have a good political environment for making FDI. The study also revealed that the fear of wrangling amongst political parties in Kenya, the frequent fluctuations in interest and currency and unfavorable cost of doing business in Kenya affected the FDI decisions of Multinational Companies. The study revealed that the potential risks to making foreign investments in Kenya were the existing level of corruption in Kenya, the current market restrictions and existing non-attractive investment policies. The study also revealed that on average multinationals would employ a Kenyan to a Chief Executive position in their organizations, mainly because the available labor force in Kenya had the commensurate skills requirements to work for a Multinational Company. However the study indicated that the current level of labor costs of the Kenyan labor force was a major concern for a potential Multinational seeking to make an FDI decision in Kenya. In conclusion, the benefits of FDI would only ensue to countries, sectors and local communities, if national policies facilitated the development of attractive investment frameworks and if country specific risks would be a threat to multinational companies as they created instabilities that would make the costs of doing businesses unpredictable were addressed. To ensure consistent FDI inflows it would be important for government institutions that were responsible for making and implementing policies that affected a country?s investment climate to work towards improving environmental factors that influenced FDI. Finally given that the quality of labor and their related costs were an important factor in deciding location of FDI especially for some labor-intensive manufacturing industries, FDI recipient countries would therefore develop internal strategies to ensure that their labor market resources are equipped with the relevant skills, education and productivity levels and that would be attractive for a potential FDI partner. The study recommended that the Government of Kenya, through the relevant national bodies re-evaluated the existing framework and strategies for attracting FDI by ensuring that the identified barriers, uncertainties to making FDI were addressed. Further it was also imperative that the Kenyan Government developed a framework for ensuring that its citizens remained competitive and potentially attractive to Multinational Companies.

An Assessment of Factors Affecting Foreign Direct Investment in Kenya [MBA Thesis]

An Assessment of Factors Affecting Foreign Direct Investment in Kenya [MBA Thesis] PDF Author:
Publisher:
ISBN:
Category :
Languages : en
Pages : 65

Book Description
The purpose of this study was to conduct an assessment of the factors that affect Foreign Direct Investments (FDI) in Kenya. The objectives of this study were to determine the existing barriers to making foreign direct investment in Kenya, to assess the existing potential risks to making foreign direct investment in Kenya and to assess the extent to which Kenyan labor force affects the foreign investment decisions of multinationals in Kenya. The design of the study was descriptive in nature. The research used both qualitative and quantitative data. The study focused on the population of 812 the multinational companies with offices in Nairobi, selected key informants from the Ministry of Foreign Affairs and Trade in Kenya and also key informants from the Development Partners. The study?s sample was 72 respondents from Multinational companies with offices in Nairobi, selected key informants from the Ministry of Foreign Affairs and Trade in Kenya and also key informants from the Development Partners. Structured questionnaires were used to gather information from key informants. The SPSS software was used to analyze the collected data to produce frequency distribution tables, mean and regression analysis of the dependent and independent variables. Regarding the barriers to making FDI in Kenya, the study revealed that generally Kenya did not have a good political environment for making FDI. The study also revealed that the fear of wrangling amongst political parties in Kenya, the frequent fluctuations in interest and currency and unfavorable cost of doing business in Kenya affected the FDI decisions of Multinational Companies. The study revealed that the potential risks to making foreign investments in Kenya were the existing level of corruption in Kenya, the current market restrictions and existing non-attractive investment policies. The study also revealed that on average multinationals would employ a Kenyan to a Chief Executive position in their organizations, mainly because the available labor force in Kenya had the commensurate skills requirements to work for a Multinational Company. However the study indicated that the current level of labor costs of the Kenyan labor force was a major concern for a potential Multinational seeking to make an FDI decision in Kenya. In conclusion, the benefits of FDI would only ensue to countries, sectors and local communities, if national policies facilitated the development of attractive investment frameworks and if country specific risks would be a threat to multinational companies as they created instabilities that would make the costs of doing businesses unpredictable were addressed. To ensure consistent FDI inflows it would be important for government institutions that were responsible for making and implementing policies that affected a country?s investment climate to work towards improving environmental factors that influenced FDI. Finally given that the quality of labor and their related costs were an important factor in deciding location of FDI especially for some labor-intensive manufacturing industries, FDI recipient countries would therefore develop internal strategies to ensure that their labor market resources are equipped with the relevant skills, education and productivity levels and that would be attractive for a potential FDI partner. The study recommended that the Government of Kenya, through the relevant national bodies re-evaluated the existing framework and strategies for attracting FDI by ensuring that the identified barriers, uncertainties to making FDI were addressed. Further it was also imperative that the Kenyan Government developed a framework for ensuring that its citizens remained competitive and potentially attractive to Multinational Companies.

An Assessment of the Factors that Influence Foreign Direct Investment in the Kenyan Horticultural Industry [MBA Thesis]

An Assessment of the Factors that Influence Foreign Direct Investment in the Kenyan Horticultural Industry [MBA Thesis] PDF Author:
Publisher:
ISBN:
Category :
Languages : en
Pages : 69

Book Description


Effect of Foreign Direct Investments Inflow in Kenya on Economic Growth, Exports and Balance of Payment [MBA Thesis a Ccompanied by a CD-ROM]

Effect of Foreign Direct Investments Inflow in Kenya on Economic Growth, Exports and Balance of Payment [MBA Thesis a Ccompanied by a CD-ROM] PDF Author:
Publisher:
ISBN:
Category :
Languages : en
Pages : 51

Book Description
The purpose of the study was to assess the contribution of FDI inflow on Kenya?s GDP, BOP and exports. This research paper was steered by the following research questions: What are the effects of FDI inflows on Kenyan economic growth (GDP)? What are the effects of the FDI inflows on Kenyan exports? and what are the effects of FDI on Kenya?s Balance of Payment (BOP)? Descriptive research design was used in this study. The research design involved observing and describing the behavior of a subject without influencing it in any way. The study relied on a correlation design. This involved obtaining data concerning FDI inflow, GDP, exports value and finally the BOP value of Kenya. The study focused mainly on Kenya as a country and data used was mainly secondary and was obtained from the Kenya Bureau of Statistics. A checklist developed based on the research questions of the study was used to collect data on the value of FDI inflow and the value of GDP, exports and BOP in the corresponding period. The time series data is from 2002-2011. Data was presented in tables. To ensure effective and efficient data analysis process, the data was analyzed using regression analysis in the statistical package for social sciences (SPSS). The data was then analyzed using descriptive, correlation, regression and analytic statistical methods and presented using tables and figures for clarity and ease of understanding. The study found that FDI inflow into Kenya has a positive relationship with the country?s economic growth. An increase in the level and value of FDI inflow to the country led to an increase in the county?s GDP. The finding on this relationship between FDI inflow and the country?s GDP revealed that the more FDI inflow into the country is health to the country?s economic growth. Regarding the relationship between FDI inflow in Kenya and the country?s exports, the study further found out that there was a negative correlation between FDI inflows and the level and value of the country?s exports. This implies that for every increase in the value and level of FDI inflow to the country, the country?s exports reduced. The study finding on the relationship between FDI inflow in Kenya and the country?s BOP was positive. For any increase in the value of FDI inflow into the country, there is an increase in the value of the country?s BOP. The finding revealed that the country?s BOP partly depends on the FDI inflow to the country and that more and more FDI inflow to Kenya is health to the country?s BOP. The study concluded that the relationship between FDI and GDP is positive but the significance of the relationship will depend on the host country?s types of investment, operational policies and even the period of the study. On the relationship between FDI inflow and the host country?s export, the study concluded that though the relationship was found to be negative, that the significance of the relationship to whether it is positive or negative also depends on the country of study, the economic policies in place and even the types of investments these FDIs venture in. and finally on the relationship between the FDI inflow and the BOP, the study concluded that the margin of significance rely on the industry, the country?s policies and the period of study. In light of these findings, the overall conclusion of the study is that FDI inflow has effect on the Kenya?s economy and is critical to the economy of the Kenya. The study made several recommendations among them the need for the government to improve the factors that favour the inflow of FDI to enhance rapid economic development and improve on the BOP. The recommendation for further study was that a similar study needs to be conducted on the other effects of FDI inflow to the host country like employment creation, on the standard of living.

Factors Affecting Foreign Direct Investment in Africa

Factors Affecting Foreign Direct Investment in Africa PDF Author: Vijen Singh
Publisher:
ISBN:
Category : International business enterprises
Languages : en
Pages : 144

Book Description


Macroeconomic Forces Transforming Economies in Africa

Macroeconomic Forces Transforming Economies in Africa PDF Author: YaAshe M. Bulama, Topbie Joseph Akeerebari, Ayilla V.N, Tafuteni Chusi, Ndanu Musyoka
Publisher: AJPO Journals USA LLC
ISBN: 9914745806
Category : Business & Economics
Languages : en
Pages : 100

Book Description
TOPICS IN THE BOOK Test of Price Volatility: A Case of the Nigerian Cattle Market Effect of Insufficient Currency in Circulation on the Rate of Inflation and Unemployment in Nigeria: The Buhari’s Administration Experience Technical Efficiency of Turmeric (Curcuma Longa L.) Production in Benue State, Nigeria Community Awareness of the Investment Opportunities in Dar es Salaam Stock Exchange Real Interest Rate, Inflation, Exchange Rate, Competitiveness and Foreign Direct Investment in Kenya

How Tax Policy and Incentives Affect Foreign Direct Investment

How Tax Policy and Incentives Affect Foreign Direct Investment PDF Author: Jacques Morisset
Publisher: World Bank Publications
ISBN:
Category : Fiscal policy
Languages : en
Pages : 34

Book Description
Tax incentives neither make up for serious deficiencies in a country's investment environment nor generate the desired externalities. But when other factors, such as infrastructure, transport costs, and political and economic stability are more or less equal, the taxes in one location may have a significant effect on investors' choices. This effect varies, however, depending on the tax instrument used, the characteristics of the multinational company, and the relationship between the tax systems of the home and recipient countries.

Index to Theses with Abstracts Accepted for Higher Degrees by the Universities of Great Britain and Ireland and the Council for National Academic Awards

Index to Theses with Abstracts Accepted for Higher Degrees by the Universities of Great Britain and Ireland and the Council for National Academic Awards PDF Author:
Publisher:
ISBN:
Category : Dissertations, Academic
Languages : en
Pages : 528

Book Description


The Renminbi Exchange Rate Revaluation

The Renminbi Exchange Rate Revaluation PDF Author: Toshiki Kanamori
Publisher:
ISBN:
Category : Currency question
Languages : en
Pages : 156

Book Description


Development of the Nairobi Stock Exchange

Development of the Nairobi Stock Exchange PDF Author: Rose Ngugi
Publisher:
ISBN:
Category : Stock exchanges
Languages : en
Pages : 64

Book Description


Multinational Firms and the Theory of International Trade

Multinational Firms and the Theory of International Trade PDF Author: James R. Markusen
Publisher: MIT Press
ISBN: 9780262633079
Category : Business & Economics
Languages : en
Pages : 468

Book Description
A comprehensive microeconomic, general equilibrium theory and empirical analysis of multinational firms.