Impact of foreign investment on economic growth in Mozambique (2000-2020)

Authors

DOI:

https://doi.org/10.52076/eacad-v5i3.583

Keywords:

Foreign Direct Investment; Economic growth; Mozambique; Megaprojects; Development.

Abstract

This article aims to show a study of the impact of FDI on Mozambique's economic growth from 2000 to 2020, exploring both the positive aspects and limitations of this investment in the local context. During these two decades, Mozambique witnessed a significant economic transformation, driven mainly by increasing FDI flows in strategic sectors such as the exploration of natural resources. Using a detailed econometric analysis of data from institutions such as the Bank of Mozambique, IMF, and UNCTAD, this study seeks to assess the contribution of FDI to the growth of the country's Gross Domestic Product (GDP). The results indicate that although FDI boosted economic growth, its concentration on capital-intensive and export-oriented megaprojects limited the positive impact on job creation and improved living conditions. The study also discusses the need for economic diversification, institutional strengthening, and reforms that facilitate: the maximization of the economic benefits of FDI to Mozambique.

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Published

05/12/2024

How to Cite

Sousa, Y. V. S. de ., & Nhabinde, S. . (2024). Impact of foreign investment on economic growth in Mozambique (2000-2020). E-Acadêmica, 5(3), e2153583. https://doi.org/10.52076/eacad-v5i3.583

Issue

Vol. 5 No. 3 (2024)

Section

Human, Social and Educational Sciences

License

Copyright (c) 2024 Yazalde Viana Serafina de Sousa; Simeão Nhabinde

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