ABSTRACT.
The paper dwells on the inadequacies of foreign direct investment (FDI) determinants in Tanzania. Despite of the several efforts , such as the far-reaching reforms in the economy, done by Tanzania to increase FDI inflows in the country, the results are far from satisfactory. The author argues that the unsatisfactory FDI inflows into Tanzania is caused by, inter alia the inadequacy of FDI determinants in the country. The main conclusion is that Tanzania lacks the adequate FDI determinants that would attract a substantial FDI inflows into the country. This makes it necessary for the country to make sure that the determinants are available in adequate amount if it is to receive more of the badly needed FDI inflows in a substantial amount.
1.Introduction.
FDI determinants characterize a country as either a good investment location (if the determinants are present in the country in adequate amount) or otherwise if the opposite is the case.
Tanzania like many other countries desires to have more FDI inflows due to the potential roles of such investments like employment creation, government revenue, efficiency, closing the investment gap and linkages effects with the rest of the economy, to mention but a few .( See for example Dunning (1994) and Buckleg and Clegg (1991) on more benefits of FDI) .
Tanzania has not performed very well in as far FDI inflows into the country are concerned. Of the seven recent FDI front runners in Africa, Tanzania is not one of them. The front runners have attracted rapidly increasing FDI inflows, reaching absolute levels never reached before and comparable to those of other well performing developin ...