Effects of Macroeconomic Factors on Foreign Direct Investment in Kenya
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Date
2019
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
European Journal of Business and Management
Abstract
This study examined the effects of macroeconomic factors on foreign direct investment in Kenya (FDI). The
study used four macroeconomic variables namely foreign exchange rates, tax rates, inflation rates, interest rates
and balance of payment for the period 1970 to 2010. The study used a multiple linear regression analysis with
the FDI inflows as the dependent variable and the macroeconomic factors as the independent variables. The
study found a positive relationship between FDI and interest rates as well as balance of payments while inflation
and tax rate had negative relationship with FDI. The study recommended that the government should promote a
stable macroeconomic environment in the country to enhance FDI.
Description
Keywords
Interest rate, Inflation rate, Exchange rate, Tax rate, Balance of Payments, Foreign Direct Investment
Citation
Karau, J., & Ng’ang’a, P. (2019). Effects of Macroeconomic Factors on Foreign Direct Investment in Kenya. The International Institute for Science, Technology and Education (IISTE). European Journal of Business and Management, Vol.11(3).