Factors Influencing Foreign Direct Investment Inflow in Tanzania

Senkuku, Azizi Mrambas; Gharleghi, Behrooz

doi:10.5539/ijbm.v10n7p48

Cited by 2 publications

(1 citation statement)

References 9 publications

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“…Only the most productive businesses can make international investments, so high productivity is essential. Accessibility of company benefits that are crucial to the company's production and challenging to transfer to outside parties, as well as a relatively strong market position in the home nation, are other criteria to take into account (Jayarah & Adewele, 2013;Senkuku & Gharleghi, 2015).…”

Section: Foreign Direct Investmentmentioning

confidence: 99%

The Effect of Corporate Income Tax on FDI Inflow in the Mining Sector in Tanzania

Mkonyi

2022

IJECON

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Purpose: Tanzania is one of the mineral-rich countries giving corporate income tax (CIT) concessions to encourage foreign direct investment (FDI). Tanzania's mining industry remains enticing to investors, owing to its expanding diversity. This paper assesses the impact of corporate income tax in the mining sector for the period of 1990 – 2020. The paper also sought to analyse the impact of other determinants of FDI namely, Political stability, Human capital and infrastructure on FDI inflow in the mining sector. Methodology: The study utilized secondary annual time series data collected from the World Bank (WB), Bank of Tanzania (BOT), and Foundation for Studies and Research on International Development (FERDI). The Autoregressive Distribution of Lags (Ardl) estimating approach was used to analyse the short-run and long-run relationship between FDI and corporate income tax as well as the aforementioned variables. Findings: A negative relationship between corporate income Tax and FDI inflow in the mining sector was confirmed. Thus, portraying both short-run and long-run effects of corporate income tax on FDI inflow in the mining sector. Unique Contribution to Theory, Practice and Policy: To encourage and increase FDI inflow in the mining sector, the government of Tanzania requires concerted efforts with relevant authorities that will ensure a fair moderation of corporate income Tax which will in turn increase tax compliance. The concerted efforts carter for factors linked with FDI inflow such as corporate income tax, political stability, human capital quality, and infrastructure. These factors align concurrently with the eclectic paradigm which is the anchoring theory of the study.

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Section: Foreign Direct Investmentmentioning

confidence: 99%

The Effect of Corporate Income Tax on FDI Inflow in the Mining Sector in Tanzania

Mkonyi

2022

IJECON

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Foreign Direct Investment and Economic Growth in Albania

Boriçi

Osmani

2015

Economics

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Since the 1980s, foreign direct investment inflow (FDI) has grown significantly in most developing countries while pertaining Alania, foreign direct investment has started after the 1990s. A lot of developing countries have made policies aimed at reducing FDI barriers. Foreign capital globalization, particularly FDI inflow is increased significantly in developing countries, due to the fact that FDI is the most stable and prevalent component of foreign capital inflows (Adams, 2009) Foreign direct investments are a very important factor for the development of a country and Albania has still much to be done to encourage such investments, especially in the legislative framework. The authors are trying to give the answer to the question that how does foreign direct investment in the Albania affect the nation’s economy? The authors identify that foreign direct investment improves technology and has positive impact on economic growth. Because the overall theory is that FDI inflow enhances and sustains economic growth in the host country.

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Factors Influencing Foreign Direct Investment Inflow in Tanzania

Cited by 2 publications

References 9 publications

The Effect of Corporate Income Tax on FDI Inflow in the Mining Sector in Tanzania

The Effect of Corporate Income Tax on FDI Inflow in the Mining Sector in Tanzania

Foreign Direct Investment and Economic Growth in Albania

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