| This thesis examines the impact of Foreign Direct Investment (FDI) on the economy of Tanzania. Tanzania implemented economic and institutional reforms in 1986 that has led to a steady inflow of Foreign Direct Investment into the economy. It continues to adopt policies to attract FDI because it now recognizes that under appropriate condition FDI can be not only beneficial to the domestic economy, but also serve as a means of providing access to the international markets.; Generally, LDCs lack the necessary background in terms of educated population, infrastructure, liberalized markets, economic stability, social stability and technology. From a development perspective, the economic case commonly made for encouraging FDI into a country is that it brings to a host country not only technology, capital, productive facilities, but also employment, job skills, managerial expertise, export markets and tax revenues. Technology advances brought by foreign firms may conceivably spill over the rest of the firms in the country, therefore originating externalities and encouraging the flourishing of domestic private activity.; In order for Tanzania to continue to benefit from FDI, proper supervision of available resources and good management of economic policies should be pursued. This includes political stability, an expanding potential market, investment incentives, structural reforms, sound fiscal regime and infrastructure facilities. (Abstract shortened by UMI.)... |
