First Name:
Michael
Last Name:
Towarnicky
Major Department:
Finance & Banking/Risk Management & Insurance
Thesis Director:
Don Cox
Date of Thesis:
Dec 2010
In developing countries where organic economic growth has been historically difficult due to a lack of domestic capital, the ability to attract foreign investment has become increasingly important. Madagascar is a traditionally poor country incapable of growth from within, and has therefore become increasingly focused on making itself a more attractive destination for foreign direct investment (FDI). Since 2003, Madagascar's FDI has shown tremendous growth largely due to actions taken by the Malagasy government. This paper aims to examine the specific governmental actions responsible for attracting new levels of FDI, and through the use of regression analysis examines the relationship between independent variables that include: exports, GDP, gross domestic savings, physical infrastructure, economic freedom, and corruption levels with overall FDI inflows.