Contributions of Foreign Direct Investment on Poverty Alleviation in Tanzania: Case Study of Mtwara District.

Victor, Edwin (2024) Contributions of Foreign Direct Investment on Poverty Alleviation in Tanzania: Case Study of Mtwara District. Masters thesis, The Open University of Tanzania.

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Abstract

The study examined the contributions of foreign direct investment on poverty alleviation in Tanzania concerning the Mtwara District. Specifically, the study aimed to explore the contribution of technology, labor surplus, and natural resource to poverty alleviation in Tanzania. The study used an explanatory research design and a quantitative approach. The study applied a systematic sampling technique to select a sample size of 449 respondents from a population of 1700 employees. This research used a Likert scale questionnaire with a closed-ended questions technique to gather information. The study used descriptive and inferential analysis to examine the contributions of foreign direct investment on poverty alleviation. Findings showed that technology, labor surplus, and natural resources contributions were positive and statistically significant. Therefore, the study concludes that technology, labor surplus, and natural resources substantially contributed to poverty alleviation. Further, the study concludes that the government of Tanzania and policy-makers should provide incentives for technology-intensive industries, foster collaborations between local and foreign firms, and establish technology parks or special economic zones. It also has comprehensive strategy for managing natural resources and minimizing environmental degradation and social impacts. Keywords: Foreign Direct Investment, Poverty Alleviation, technological, labor surplus, natural resource

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