posted on 2024-09-06, 06:58authored byGetaneh Habtamu
Foreign Investment, either made by foreign investor or domestic investor, is very much
necessary for the development of a country.. It is necessary for economic development of
countries, especially for least developing countries, byfilling a gap that is created by lack of the
capacity (such as technology, skilled labor, capital and access of global market). Domestic
investors in developing states can also benefit from foreign direct investment through transfer of
advanced technology, acquiring modern management system, generating investment capital and
creating opportunity to get access in to global market.
Of course, from conflicting theory offoreign direct investment and Federal Democratic Republic
of Ethiopian Industry Development Strategy we can understand that as foreign direct investment
has also its own negative effect on host state especially on infant domestic industries irrespective
of its advantage. There for the host state (Ethiopia) should focus on the advantage of foreign
direct investment by minimizing or eliminating if possible its negative effect.
The researcher discuss the impacts of foreign direct investment on domestic textile
manufacturing industry from the perspectives of expectation of Federal Democratic Republic of
Ethiopian law and policy of by evaluating the practical aspects of foreign direct investment and
domestic textile manufacturing industry in Ethiopia. The study find out that as there is much of
positive impacts and some of negative impact. There is a gap of law that governs the effects of
foreign direct investment in Ethiopia and transfer of technology. It also needs to minimize those
effects by taking some regulatory and practical action.
Funding
Jimma University
History
Publisher
Jimma University
Citation
Habtamu, G. (2015) Impacts of foreign direct investment on domestic textile manufacturing industry (legal and practical analysis). Jimma University 87. Jimma: Jimma University.