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

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Languages : en
Pages : 69

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Author:
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ISBN:
Category :
Languages : en
Pages : 65

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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.

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Category :
Languages : en
Pages : 51

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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.

Author: Rose Ngugi
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 72

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Author: Kelvin Maingi
Publisher: LAP Lambert Academic Publishing
ISBN: 9783659314490
Category :
Languages : en
Pages : 60

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The general benefits of foreign direct investment (FDI) for emerging economies are well documented. Given the appropriate host-country policies and a basic level of development, various studies show that FDI results in technology spillovers, enables human capital formation, improves international trade integration, helps create a more competitive business environment and improves enterprise development. All of these result in higher economic growth, which is a crucial tool for alleviating poverty in developing countries. This study explores the impact of foreign direct investment on the Kenyan economy using FDI and GDP inflow data series from 2004 to 2013. The Statistical Package for Social Sciences was used to analyse the data where descriptive analyses, frequencies and trend analysis, as well as inferential analyses involving Analysis of Variance (ANOVA) and Correlation analysis to establish relationships between the variables. Graphical trend analysis of FDI and GDP reveals a direct positive relationship between the two variables.

Author: Bhuiyan, Miraj Ahmed
Publisher: IGI Global
ISBN: 1799880230
Category : Business & Economics
Languages : en
Pages : 323

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The Belt and Road Initiative (BRI) is establishing significant connectivity networks, including a complex network of aviation e-services and trade network systems. It has promoted economic and financial development in regions covered by the BRI in terms of infrastructure construction and interconnection and attracted large foreign direct investment flows. At the bottom of the escalation of the China-US trade dispute is a more fundamental shift where China has become the US’s strategic competitor, and political-economic tensions have continued to climb. Opportunities and Challenges for Multinational Enterprises and Foreign Direct Investment in the Belt and Road Initiative analyzes the opportunities and challenges of multinational enterprises (MNEs) and cross-border foreign investments transactions. This valuable reference adopts an economic and international business perspective to address these issues and presents novel and state-of-the-art research insights into the role of MNEs and their influence on the Silk Road Economic Belt. Covering topics such as economic determinants, foreign direct investment promotion policies, and trade gravity model, this premier reference source is an excellent resource for business leaders and CEOs, policymakers, geopolitical experts, politicians, government officials, sociologists, libraries, students and educators of higher education, researchers, and academicians.

Author:
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Category :
Languages : en
Pages : 75

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The purpose of this study was to investigate the strategic factors influencing the export of Kenyan Coffee in foreign markets. The study was guided by the following research questions: To what extent do internal organizational factors influence the entry into foreign markets? To what extent do the external market factors influence the entry into foreign markets? And to what extent do the market entry strategies influence foreign market entry? The study used descriptive research design. The sample size constituted of 63 respondents selected from a total population of 75 managers in various coffee factories in Nyeri, Murang?a, Kirinyaga, Kiambu, Meru, Embu and Machakos. The study used questionnaire as a data collection tool from the respondents who were involved in the study. This study used descriptive and inferential statistics in analyzing the data. The data was presented using tables, and figures to give a clear picture of the research findings at a glance. The findings on the influence of internal organizational factors in the selection foreign markets established that coffee firms are driven by the market demands, employee competence, technology and availability of finance. The findings on the influence of external organizational factors in the selection foreign markets revealed that coffee firms are driven by the response to the customer needs and preferences and the government enabling conditions to improve their overall competitiveness in the industry. The findings on the influence of market entry strategies in the selection foreign markets indicated that coffee firms contracts other companies to manufacture some or all its products for sale, third party logistics and joint ventures to emerging economies. The study recommended that the use of employees? skills, customers? needs and licensing are capable of improving access to foreign markets. Therefore, future researchers can investigate whether Coffee firms in Kenya show some tendencies towards oligopoly or not.

Author: Nandwa Mukolwe Erick
Publisher:
ISBN: 9789966058898
Category : Investments, Foreign
Languages : en
Pages : 46

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Author: Sharon Mutsau
Publisher: diplom.de
ISBN: 3960676697
Category : Law
Languages : en
Pages : 101

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Bilateral investment treaties (BITs) signed prior to the 21st century are problematic. Some countries with BITs signed during this period have since reviewed those BITs and taken action to address the disadvantages the BITs held for the host nation or have either resorted to eradicating some of their BITs. In particular, developing countries that signed BITs with developed nations seem to be disproportionately disadvantaged in these agreements. This research highlights Kenya’s current BIT situation and compares it in light of another developing country, South Africa, with regards to its BIT experience. Given that South Africa has undergone an extensive BIT review process and moves to change some of these BITs, this study compares and contrasts the Kenyan and South African experience. The study highlights the possible lessons that could be learnt from the South African BIT review experience and provides recommendations for the Kenyan government regarding its outdated BITs. The lessons and recommendations benefit not only Kenya but also other countries that are still to review their BITs as it adds to the literature on why it is important for countries with such BITs to revisit them and how they can go about the review mechanism best. In addition, the study is also significant as far as it raises awareness of the use and effects of BITs, thereby enabling countries that enter into such agreements to make informed decisions.

Author: Joao Paulo Cerdeira Bento
Publisher: LIT Verlag Münster
ISBN: 3643100841
Category : International economic integration
Languages : en
Pages : 174

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This volume provides a significant contribution to the understanding of the effects of foreign direct investment on trade. Through an investigation of the pattern and determinants of trade in Portuguese manufacturing, it demonstrates FDI's long term transforming effect and how it has the potential to transfer and embed knowledge within the EU through upgrading host economies. The volume will be of interest to academics, postgraduate students, researchers and policy makers.