The Contribution Of Foreign Direct Investments For Regional Economic Development In The Case Of Oromia Regional State

This study assesses the contribution of foreign direct Investment for regional economicrndevelopment: In the case of Oromia regional state. A sample of 77 foreign companies and 406rnrespondents from the local community used as a primary source and secondary data obtainedrnfrom the federal and Oromia bureaus were analyzed in the process of answering the basicrnquestions. After the data has been collected, it was analyzed using linear regression andrnDescriptive statistical analysis. The result of the study indicates that there is a positivernrelationship between the regional economic growths Vs foreign direct investment and regionalrntax revenue Vs inflow of foreign direct investment. However, less positive correlation exhibitedrnamong the dependent and independent variables in both contexts. The job opportunities havernbeen creating for the local community. However, in terms of the quality of the job they are veryrnpoor which characterized by poor payment and unskilled labor recruitment. The socialrndevelopment practice by the foreign companies in the region indicates that, they are activelyrnparticipating in the provision of clean water for the local community. Regarding the humanrncapital development, the study found that the foreign companies’ participation is minimal tornzero. Based on the major findings the study forwarded recommendation for the foreignrncompanies and for the regional government as well.

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