Publication

This paper reflects that the world has increasingly recognized that private capital plays a vital role in economic development. African countries have moved to liberalize the investment environment but have not received much FDI, as there is lingering skepticism toward foreign investment owing to historical, ideological and political reasons. Meanwhile, the authors stress that new data from firm surveys in Kenya, Tanzania and Uganda show important positive effects from FDI for both the host economies and the workers in foreign-owned firms which contribute to economic development and integration with the global economy.