Impact of Foreign Direct Investment on Local Tanzanian Industries. The Case of Dar es Salaam Region.

Makoa, Ally J. (2021) Impact of Foreign Direct Investment on Local Tanzanian Industries. The Case of Dar es Salaam Region. Masters thesis, The Open University of Tanzania.

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Abstract

The focused on the impacts of Foreign Direct Investment on growth of local Tanzanian Industries specifically Dar es Salaam region. Foreign direct investment (FDI) is a key element in this rapidly evolving international economic integration. Descriptive survey design was used to examine impact of Foreign Direct Investment on Tanzanian Local Industry. Descriptive survey research produces statistical information about aspects of Foreign Direct Investment that interest policy makers and administrator. Purposive sampling and simple random sampling were employed to obtain information. The study respondents were 100 entrepreneurs and 10 key informants. Structured questionnaire was used to data collection. Data were analyzed using SPSS descriptive and logistic regression. The study findings revealed that government terms and regulation, availability of natural resources and presence of technology and infrastructures are the paramount driving force for FDI in Tanzania. However, findings show that the affiliate integration in the local industry influencing the level of innovation on the quality of the product, introduction of new design, advancement of new production, work organization and efficiency work tasks. The FDI has an impact on the growth of the local industry in a different area as the findings indicate most of the development of the Tanzanian industry in terms of technologies, innovation and the issue of market research was stimulated much in 2000s. The findings call for the government to formulate the attractive policies for foreign investors but also Government to offer attractive incentives for FDIs who can bring in medium and high-tech investments to the country. Keywords: Investment, Industry, Foreign Direct Investment, Government.

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