Policy Brief No. 15 of 2006 on Attractig Foreign Direct Investment into Kenya
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Publication Date
2006Author
Type
KIPPRA Publicationsviews
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The Kenya Institute for Public Policy Research and Analysis
Abstract/ Overview
Kenya has witnessed a decline in net flows of foreign direct investment (FDI) in the last two decades. A significant decline occured in the 1990s when the economy was going through various policy and institutional changes,coupled with un-sustained improvement in macroeconomic environment.While the early 2000s indicate a rise in inflows, this is coupled with huge outflows, meaning that the economy is losing in its ability to sustain FOi.The country shared 87% of FOi in East Africa in the 1980s.This declined to 21 % in 2001 and 5.3% in 2002.Kenyan firms are increasingly re-locating to Uganda and Tanzania, implying that Kenya is losing its competitiveness to the neighbouring countries.
Subject/ Keywords
Foreign Direct Investment; Infrastructure development; Political risk factor; Macroeconomic issues
Further Details
This policy brief is based on KIPPRA Discussion Paper No. 48 of 2005 on Institutional Factors and Foreign Direct Investment Flows: Implications for Kenya. The study analyses various factors that influence foreign direct investment, using and empirical analysis that brings together traditional and non-traditional factors.
Publisher
The Kenya Institute for Public Policy Research and AnalysisSeries
Policy brief No.15 of 2006;Collections
- Policy Briefs [343]