Cementing the Future – A Closer Look at FDI and Growth

Tanzania is one of the world’s poorest countries. But it has a lot to offer and in recent years both tourists and companies have realised this. This thesis focuses on the companies and takes a closer look at the growth performance and the inflow of Foreign Direct Investments (FDI) to Tanzania. By presenting a case on the cement industry in Tanzania the thesis also provide some insight in the mechanisms of FDI on a more practical level. The findings conclude that the FDI and growth have both increased extensively since the 1990’s, but I refrain from comments on the causality of this relationship. The economic reforms that the country underwent in the 1990’s are thought to have played a key role in the development of the country. From the case presented we draw the conclusion that a FDI can affect the value chain as well as the whole country in numerous ways.

Contents

1. INTRODUCTION
2. THEORETICAL APPROACH
3. EMPIRICS
3.1 GROWTH
3.2 FDI
4. CASE: TANZANIA PORTLAND CEMENT COMPANY
4.1 TPCC
4.1.1 VALUE GENERATION
4.1.2 EMPLOYMENT
4.2 THE DISTRIBUTION CHAIN
4.2.1 VALUE GENERATION
4.2.2 EMPLOYMENT
4.3 THE RETAILERS
4.3.1 VALUE GENERATION
4.3.2 EMPLOYMENT
4.4 ESTIMATED EMPLOYMENT AND DISTRIBUTION OF VALUE GENERATED
5. ANALYSIS
6. CONCLUSION
7. NOTES

Author: Chorell, Hugo

Source: Uppsala University Library

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