Factors Affecting Fdi Inflow in Tanzania

CHAPTER ace 1 INTRODUCTION 1 HISTORICAL BACKGROUND OF TANZANIA INVESTMENT total (TIC) Tanzania enthronization message (TIC) is the special agency of the G everywherenment of Tanzania to coordinate, encourage, promote and avail placeing in Tanzania and to discuss the Government on siteiture tie in matters. TIC is a focal point for investors. It is the first point of call for the authorisation investors it is a iodine stop facilitative centre for all investors, engage in the agate line of market placeing Tanzania as an investing finis.TIC was established in 1997 by the Tanzania investiture Act No. 26 of 1997 to be the primary agency of Government to coordinate, encourage, promote and facilitate investment in Tanzania and to advise the Government in coronation related matters All Government de adjournments and agencies ar required by faithfulness to cooperate fully with TIC in facilitating investors. As a primary agency of the Government in all investment matters, TIC is charged with the get hitched withing functions- Assist in establishment of enterprises e. g. ncorporation of enterprises Obtain needed licenses, work permits, visas, approvals, facilities or service Sort knocked out(p) both administrative barriers confronting some(prenominal) topical anesthetic and international investments Promote two foreign and topical anesthetic investment activities Secure investment sites and assist investors to establish EPZ projects Grant Certificates of Incentives, investment guarantees and register technology agreements for all investments, which a re over and preceding(prenominal) US $ 300,000 and 100,000 for foreign and local investment respectively Provide and interpenetrate up to date entropy on existing investment opportunities, benefits or incentives avail fitting to investors and Assist all investors whether or non registered by TIC. TIC home plate is in Dar es Salaam, but has established Zonal offices in Kilimanjaro, M wanza and Mbeya sections in ordain to assist Investors who ar based in nearby regions to entrance TIC services without needfully traveling to Dar es Salaam.The Zonal offices are obligated in assisting investors to obtain all relevant permits, approvals and licenses they require in order to set up their businesses. In order to strengthen and expedite facilitation services, go (10) Senior Officers from Government or its Executive Agencies sop up been permanently stationed at TIC to serve investors downstairs one roof. Presently these officers include those from- Ministry of Land, Ho victimisation and human being Settlement Development Tanzania Revenue Authority (TRA) Immigration Department Ministry of Labor, transaction and Youth Development (Labor Department) Ministry of Industry, sell and Marketing ( look atorate Trade) Business Registration &038 Licensing action (BRELA).? 2 BACKGROUND OF THE difficultyFDI has been one of the principal beneficiaries of the liberal ization of crown be givens over recent decades and now constitutes the major sorting of capital influx for some(prenominal) Afri rear endister countries, including some low-in surveil ones like Tanzania. Economies are a enceinte deal considered little vulnerable to external financing difficulties when current account deficits are financed for the most(prenominal) part by FDI inflows, rather than debt-creating capital flows. There is no denying the importance of FDI inflows both for their contribution to sustaining current account imbalances in countries and for their contribution to broader stinting return, done technological spillovers and competition topics.Recent economical reports show that Tanzania lags behind neighbors Kenya, classless Republic of Congo, Zambia and to a fault Madagascar in its ability to attract foreign investors. A ccording to a top economic official, the failure to execute pro-business reforms is keeping prospective foreign investors away f rom Tanzania. (Konye Obaji Ori, Afrik. com, Thursday September, 2008). The Chief Executive Officer of the Tanzania investment Centre, Mr Emmanuel Ole Naiko, said even countries with less attractive opportunities and resources were receiving more foreign count investment beca part the culture of poli distinguishing and prejudicial public sen timents against foreign investors in Tanzania were among factors prevent the inflow of investments in the soil.In recent years, the flow of FDI has been steady growing. From 2004 to 2005, the inflow grew by 29 percent to reach US $ 916 billion). During the alike(p) Tanzania attracted US $ 330. 6 million. To ensure maximum benefit to the parsimony, potential factors change FDI flow should be inquiryed periodically. (Tanzania coronation Report, BOT, 2006). A large proportion of the FDI flow into Tanzania has subjoind from 552 million US Dollars in 2006 to 600 million US Dollars in 2008, ranking the country among the top ten recipients in Africa. Given its lateralisation in financial globalization and the potential invasion to the economies, FDI tend to get various challenges to individual recipient countries.For practice monitoring and evaluation of the inflows, nurtureing macroeconomics stability, and attempt institutional and insurance reforms for the purpose or realizing optimal benefits from the inflows. These challenges obligates Tanzania to join on cogency to compete interms of attracting investments, gaining global market shares and remediate social economic welfare. whence the main objective of TIC is to facilitate investment for national growth by enhancing an env pressment bringive for business and entrepreneurship growth hence attracting FDI inflows. 0. STATEMENT OF THE PROBLEM For the past two decades, Tanzania had been conceiving several(prenominal)(prenominal) efforts to attract contradictory Direct Investment. paper policy and structural reforms carried out since 1980s played signifi backt usage in improving the investment purlieu in the country. These efforts put one over resulted into increase in FDI inflows into the country. provided the increase in FDI and related investment pose a need to evaluate potential factors that induce the flow of FDI and should be emphases in this issue. The small number of investors in the country is usually contributed to pale economic performance. So it is cardinal to divulge factors that advert these investors non to invest in the country. It is also important to recognize the mixture of positive and negative powers of FDI bring into the country.The investigator go forth evaluate ship evokeal which can be use to increase the resultant roles of FDI hence leading to delivery growth. Therefore the aim of this discover is to order and evaluate the potential factors that affect the flow of FDI into our country. 1. 4 look into OBJECTIVE 1. 4. 1 General Objective. To identify and evaluate the potential factors th at affect the inflow of FDI in Tanzania so that to maximize the effects of FDI hence leading to the growth of economic system. 1. 4. 2 Specific Objectives To identify and evaluate the sources of FDI To analyze the role of FDI as a source of economic development To analyze the effects of FDI in the host country and how this can be reckonled. 1. 5 RESEARCH QUESTIONS 1. 5. General Questions What are the Potential Factors That pertain FDI Inflows? 1. 5. 2 Specific Questions 1) Will policy measures lead to increase/ belittle in FDI inflows? 2) What testament happen is some companies with foreign ownership maintain offshore accounts, from which their debt overhaul is made cultivately, and then leading to unknown give? 3) What policy measures to be taken as FDI inflow into the country come from different countries with different investment requirement hence having different requirements? 4) What is the effect of availability of highly educated and skilled labor in FDI Inflows? 5 SIGNIFICANCE OF THE RESEARCH 1. To the Target GovernmentThe get word ordain deliver the goods teaching for developing policies on investment promotion and planning on future investment strategies. overly it pass on help in improving the necessary surroundings for attracting FDI inflows in the country. 2. To Future Researchers To help separate look forers to conduct future study on the analogous line of work given the gaps this world power be encountered by the search worker. Also it can be employ as reference for literature re work outs on the same trouble in a nonher(prenominal) areas relating with FDI. 1. 6. 3 To the Researcher 1) The study is the partial fulfillment of the requirements for Post graduate Diploma in fiscal heed to be awarded by the pioneer of pay Management. IFM) 2) The tec leave behind gain confidence to conduct early(a) look into Studies independently at his places of work as to solve massive and short term lines due to widened abilit y in writing and reportage skills. 1. 6. 4 To Investors The study go forth be of much importance to local and foreign investors, policy makers, donors, academicians as well it go out be a useful source of schooling about the factors that determine FDI inflow in the country. 1. 6. 5 Reference Period The study conducted may be used in the coming three (3) years. 1. 7 SCOPE OF THE STUDY The study is intended to provide information on the potential factors that affect FDI inflow as well as bring out investors perception of the parsimony and business environment ranging from macroeconomic property, infrastructure, financial governance and labour factors.The research will be conducted in Dar es Salaam region at TIC Headquarters and will take approximately two (2) months. The issues to be examine here are the potential factors that affect the FDI inflows, the sources of FDI into the country and the impact of FDI to the country both negatively and positively. 8. GAPS TO BE FILLED 1) FDI by locally have companies has to be analyzed too, as many records shown by the past researchers are for the fully owned by foreigners or partially. 2) To augment information on the previously done research on the gap trying to have a census on the set of potential factors affecting FDI inflows. 3) The study will try to overcome or at least humiliate the gap as outline above. 9. CONCEPTUAL MODELTanzania benefits from FDI because these flows augment the moderate Domestic savings and bring with it finance, managerial skills, technology, marketing expertise and market links. However upstart opportunities also bring risks that should be managed properly, especially in the causa of policy reforms e. t. c. 10. ASSUMPTION OF THE STUDY The Researcher anticipates the future(a) given in the research butt- 1. 10. 1 Time It is assumed that the time will be sufficient to complete this study. The time given is not sufficient to make the researcher to make a comprehensive study. This i mplies that the researcher will face difficulties in gathering all the important information for analysis. 1. 10. 2 Respondents It is assumed that some of the respondents will cooperate.Some respondents will also be a problem in the study this is because of their psycheal involution and might choose to be untruthful. Also there may be a problem of absence of respondents. 1. 10. 3 Access to Records A problem of fully access to some enters may pose a problem as some documents are termed as very mystic and thus cannot be accessed by anybody especially the outsider. 1. 10. 4 Funds It is assumed that the bullion will cover what is on the budget. However any amplificational be outside the budgeted one may pose as a problem as there will be no make upitional monetary resource from my sponsor. Inexperience in conducting research may lead to some delays hence increase in cost of the study.CHAPTER TWO 2. 0 LITERATURE reappraisal 2. 1 INTRODUCTION Many researcher has been conducted r egarding the analyses of the major determinants of FDI flows but did not come to census on what can be specified as a set of major determinants of FDI inflows, as this varies from one country to another(prenominal) and from one host to another. (World Investment Report, 2008). The flow of FDI to different countries is unequal. The major sources and destination of FDI have been the USA, the European Union, and Japan. Europe is currently the largest recipient and source of FDI. Africa has been receiving the last(a) share of global FDI despite efforts by African ountries to attract it. However the climate has improved over the past few years. The growth of nationalated output has been greater that that of the population for the first time in years. (Recep Kok et al, Analyses of FDI Determinants in evolution Countries, ledger of Social Economics, Volume 36 1/2 2009 PP105 123). Tanzania veritable US $ 600 million in 2008 and became the third largest recipient of FDI in SADCC regio n. However Tanzania has an upside potential to attract more FDI because of its continued semi semi governmental stability, promising prospect in the mining and biogas, and tourism. (World Investment Report, 2008). 1 core and Overview of FDI in TanzaniaRecep Kok et al, defines Foreign Direct Investment is as a solecism where a resident entity in one economic system acquires lasting fill in an enterprise in another countrys economy with significant degree of influence. The World Investment Report (WIR) 2008, which was launched by the escritoire General of UNCTAD Dr. Panithpakdi, indicates that the FDI inflow in Africa has recorded an impressive performance. It shows that FDI on the celibate has hit a record and that Africa has the highest returns on Investment. The Government has continued to improve the countrys investment climate, by introducing different reforms which will be of refer to investors. However as everyone sees, the foreign investment is highly gruelling in some parts of Tanzania, in the big cities like Dar Es-Salaam, Mbeya, Arusha e. t. c.Also it is concentrated in the mining areas like Geita, Kahama, Nyamongo, and Tulawaka. In areas where the only output obtained there is agriculture, there are no or few investments. (Tanzania Investment Report, 2006). FDI has some components which are- 1) Direct Equity Investment 2) Retained remuneration attributable to non-residents 3) Long-term shareholders and inter-company loans 4) Short-term shareholders and inter-company loans and 5) Suppliers credits from related companies. The surge of amour in FDI and multinational companies has been so high that in Tanzania there has been a high expectation in terms of what the companies can do and in the main on the development effects of FDI.While FDI can, indeed, contribute to national economic and social development in many ways, the engagement and performance of home(prenominal) actors are very crucial. The effect of FDI largely depends on the polici es of the host country. This goes beyond the mere liberalization of economies. Deliberate measures to develop human capital and soulal and social infrastructure can also be valuable ways to upraise the quality of FDI that countries can attract. Tanzania is making major efforts to increase FDI inflow by improving the investment climate. It has embarked on wide-ranging policy, political and institutional reforms aimed at reducing (and if possible removing) barriers to entry of foreign capital, particularly FDI.Trade investment liberalization, privatization and the creation of various incentives for foreign investment have received considerable attention of the disposal. regional economic consolidation bodies and free cover zones have been created to enlarge the size of markets and adopt common investment regimes at sub-regional and regional levels. These efforts are based on recognition that FDI can take a shit economic growth, generate new physical exertion opportunities, pro mote transfer of new technologies and contribute to environmental sustainability in the region. (Oyeyinka, 2004) 2 FDI Inflow and Prospect for Tanzania Tanzanians Foreign Direct Investment has increased by near 15Percent in 2008, mainly due to investment in innate(p) resources Exploration projects already in operation. Tanzania has ranked number 12 among major FDI receiver African countries after Nigeria, Egypt, Morocco, Sudan, Equatorial Guinea, Algeria and Tunisia. Other countries onward of Tanzania are Madagascar, Zambia, Ghana, DRC and Kenya. (World Investment Report, 2008). However, there is no reason why on earth countries like Zambia and Madgascar should surpass Tanzania, particularly when one tone of voices at the natural resources endowments the country enjoys. Tanzanias problem has been engagement in too many debates, which inhibited some the making of quick and timely decisions.Giving the example of a country like Mozambique, although it was devastated by the war, had managed to successfully develop its coal mines leaving Tanzanians to debate on who should develop Mchuchuma coal or Liganga iron ore deposits. Since early 1986, The Government of Tanzania, with determination, launched a comprehensive economic reforms and stabilization programme. In pursuit of this, agricultural marketing has been liberalized, foreign permutationd controls have been lifted, terms deregulated, enhanced mystic sector involvement in the economy by privatization programme and the new investment code tendering competitive incentives has been in place. These comprehensive economic reforms have resulted into improved competitiveness, lower tariffs, increasing levels of foreign investment in swop, improved key economic indicators and rapid integration into world markets.To this end, the Government is currently embarking on a strenuous go to upgrade its institutions and bring them at par with international standards. The expectation is to enhance the countrys competi tive position for investment flows destined for the region and meet the challenges of globalization. give in 1GDP Snapshot for 2004 GPD US $ 8. 8bn GPD per Capita USD $ 240 GPD exploitation 4. 3% Agriculture Value Added 47. 6% Industry Value Added 14. % service Value Added 38. 0% Source World Bank Tanzanias 15 years track record of largely satisfactory reforms has consolidated a favorable macroeconomic environment, which makes it one of the main incentives for foreign investor. Growth per capita is judge to increase by 3. 4% amidst 2004 and 2009. (Tanzania Investors exact, 2002 and beyond). Table 2FDI Inflows, 2004 2007 division US $ mn 2004 183. 3 2005 350. 5 2006 522 2007 600 Source Bank of TanzaniaAn increase in Foreign Direct Investment, apparently, indicates that the countrys investment environment has increasingly improved in the manner that investors are now able to predict more precisely profits to be accrued from their investment. Table 3 TIC Approval of F oreign Investment 1990 2000 YEAR US $ mn 1990 47. 25 1991 471. 49 1992 204. 9 1993 527. 05 1994 302. 99 1995 263. 42 1996 467. 85 1997 384. 9 1998 1464. 69 1999 1211. 2000 767. 77 Source Tanzania Investment Centre 2. POTENTIAL FACTORS THAT allure FDI The literature groups the factors that attract foreign investment into two groups external herd factors and domestic pull factors. Among the pull factors are a. Economic and political reforms that shape up confidence in the economy b. Reforms such(prenominal) as debt restructuring which ease the spacious run foreign vary constraint and therefore enhance the sustainability of foreign exchange inflows c. Liberalization of foreign exchange flows (both current and capital) in the balance of payments d.Simplication of red-tape requirements for direct and portfolio investment and liberalization of restrictions on closed-door sector borrowing from a broad e. Macroeconomic factors, these are fiscal policy, monetary policy, g overnment stability, government spending regulatory frame work, state intervention in private business, and financial sector stability. The government has to have a clear look on these factors as they affect investors operations f. The infrastructure and public services including inland transport, ports, electricity and water supply, postal services, telecommunications, customs services, immigration facilities, municipal services, banking services and credit rating g.Diverse factors including corruption, internal security, domestic political scenario, regional political scenario, domestic economic situation, global economic situation and market expansion h. Governance factors that include regional trade integration, trade policy, investment incentives, bureaucracy, and tax collection efficiency, effectiveness of legal law, land law and administration and speed of decision making i. Inflation, availability of business credit, pursual rate, depreciation on domestic bills, national p ayment system and exchange control are among the pull factors. Among the push factors are a. The relative blood in international interest rates (mostly US dollar rates) when compared to interest rates in developing economies b.Cyclical downturns in economic action mechanism in developed economies, which reduce the demand for investment funds and c. A move towards intentional diversification of asset portfolios by major portfolio investors such as pension funds and insurance companies. The literature identified both push and pull factors as being behind the increase in capital flows to developing economies in 1990s. However, it is domestic or pull factors over which policy makers can have direct impact in attracting inflows of private capital. (Asea and Reinhart, 1995) 3. MEASURES TO BE TAKEN BY TANZANIA TO INCREASE FDI INFLOWS There are several ways home countries can increase FDI inflows. These include a.Reducing political risk by enhancing the credibility of reforms. Sub-Saharan Africa seems to be seen as one homogeneous continent and therefore the bad behavior of few governments often leads to a negative image for all. Credibility also matters for the sustainability of reforms. Reforms that are credible are more apparent to be sustainable in the long run as economic agent react positively to policy measures and result in virtuous circle behaviors. (Kasekende and Bhundia, 2000) b. Political reforms, political overthrow is very damaging to economic growth and is not conducive environment for both domestic and foreign investment (Kasekende and Bhundia, 2000).Political reforms should be aimed at building frameworks that are more inclusive, encourage power sharing and abide for enhanced public participation in political impact. c. Insurance against policy risk. Home countries can sign bilateral or multilateral investment treaties that have legally binding elements establishing the obligations of the host country toward foreign investors from other signato ry countries. d. Macroeconomic stability should be ensured, as it is prerequisite for attracting sustainable, long foreign investment into a country. Hadjmichael et al (1996) conclude the most important impact of policies on private investment behavior was through their effect on macroeconomic dissymmetry and uncertainty.This suggests that greater macroeconomic instability can have a considerable adverse impact on domestic and foreign private in investment. e. External burden should be reduced. In many African countries external debt servicing, most of it official, continues to exact a significant burden on finances. In principle, heavy external debt does not automatically translate into low growth. Growth in export simoleons can allow for continued importation investment goods to maintain growth while servicing external debt at the same time. However, if borrowed money is invested principally in non-traded sector then the situation will arise where the economy is unable to pay for imports required to maintain growth. 4. ADVANTAGES AND DISADVANTAGES OF FDI AS A writer OF ECONOMIC GROWTHAccording to B. Seedha et al in their paper Foreign Direct Investment in Africa, FDI is simply a source of capital. The impact of FDI is dependent on what form it takes. This includes types of FDI, sector scale, duration and location of business and petty(a) effects. It is important to note that while some have experience growth because of large FDI inflows, others have not. FDI can contribute to gross domestic products, gross fixed capital formation and balance of payments. Other contributions FDI can make to host country economy include assisting in debt servicing repayments, stimulating export markets, and producing foreign exchange revenues.Another aspect of FDI is that it can serve as source for economic development is in currency stability. FDI can contribute to social development by increasing employment and wages and by replacing warning market sector. FDI may off er poverty reduction, since poverty is related with unemployment. High levels of FDI do not necessarily show domestic gain (B. Seedha et al). Other factors may limit the economic gain to the host countrys economy. Example of such factors includes integrated strategies, and importation of goods and resources used in production. However FDI is mostly impact by countrys instability. The gain in employment, wages and so on may be realized by very small part of the population.When this happens wage differences between income groups will increase and the distribution of income may wrench unequal. Another negative effect of FDI as a source of economy is where the parent companies dominate the local market, leaving the local companies with no where to go. CHAPTER trine 3. 0 RESEARCH METHODOLOGY 3. 1. INTRODUCTION This section describes the methodologies framework of the study which includes Research paradigms, Research Design, types of measurements, info collection methods and approach , types of data, try techniques, sampling procedures, reliableness and validity of data, management and analysis of data and limitations of the study. 3. 2RESEARCH PARADIGMSParadigms or School of cerebration in research scholarship are accepted ways of flavour at reality and the consequent approach/methods to generate knowledge that is held by a group of intellectuals who have wide influence in that opened area. The basic premise behind the paradigms is based on how people view reality (Lufumbi, 2008). 3. 3 RESEARCH DESIGN Research externalise is the boilers suit plan of the research. It is referred as a blueprint for the collection, measurements and analysis of data. During the study the baptistery Study design will be used. This is due to the fact that the research will be conducted in a single organization, and also shell study design allows variety methods of data collection methods.In addition to that case study design will gives the room to researcher to make rigorous analysis of the organization under the study. Case study design is also less costly compared to other research designs. However the case study design limits the researcher from generalization to other unit of the same kind because it may not be a true phonation sample. It allows the researcher to be able to get close to the sources of information. 3. 4 RESEARCH TECHNIQUES In analysing the data the researcher will adopt both quantitative and qualitative techniques. Tables will also be used by the researcher to present the information where applicable. 3. 5TYPES OF MEASUREMENTSMeasurement is a process of assigning meter to objects or observation, the level of measurement being a function of the rules under which the number assigned (Kothari, 2004). Technically speaking measurement is the process represent aspects of range according to some rules of correspondence. The measurement of the collected data will be delivered score that will be obtained from the respondent when making m oxie of data that would make from the research development. The delivered score will be of trend those from face to face question, questionnaires, documentations and observation. 3. 6 SAMPLING TECHNIQUES The simple Random sampling approach will be used to select the sample.The researcher expects to follow the following approach in selecting the sample- All Foreign Investors registered with Tanzania Investment Centre as a population to be studied will be identified through the register. Sample of foreign investors will be daltogethern randomly. Judgment approach to sampling will be used to select the items to be studied. 3. 7 DATA COLLECTION METHODS AND APPROACHES The data to be collected are those which will be able to address the research objectives and answer the research questions. Both primary and secondary data will be used in this study and the research intends to use several relevant data collection method to collect them. 3. 7. 1 main(a) selective information Primary dat a are original works of research or raw data without interpretation or pronouncements that present of official opinion or position.Secondary data are those data obtained from literature sources. These are the ones that have already been collected by the other people for some other purposes. This is second had information. Secondary data include both raw data and published ones (Sunders et al, 2000). The following methods will be used in assemblage primary data Interview This method will be use for the purpose of seeking clarifications on some of data collected. For this reason the interview will be in form of verbal and unstructured. Questionnaire The researcher will set relevant questions on factors attracting FDI inflow, and those questionnaires will be distributed to different staffs who will answer them.This method will be used to give fair to middling time to call back about the question and respond to them accordingly. These will be administered to TIC staffs in order to col lect data relating to such issues like what they think attract foreign investors to invest in Tanzania, what hinder foreign investors to invest in the country, the advantages of FDI inflow in Tanzania. , and how do they purchase, issue and receive stores. observance The researcher will observe and participates directly in daily activities of TIC. This will enable the researcher to analyze each particular activity in effect and appropriately. Also this method will make help to the researcher to get the behavior of the respondents a) Documentary SourceIn this course of collecting data, the researcher will be trying to go through different document held by TIC. 2. Secondary Data The researcher will collect secondary data through the review of various literatures from different sources such as minutes, reports, policies and legislation regarding the investments in Tanzania. 7. RELIABILITY AND VALIDITY OF DATA The researcher will make sure the measurable data are valid by controlling t he questionnaires, and interview and ensure that are directed to the right person at TIC and make sure the reliability of the data by reviewing information which is from reliable and right documents. 1. ReliabilityReliability refers to the question of whether a measurement instrument or process can produce the same results if in turn employed by different researchers (Ndunguru, 2007). It refers to the extent to which a measure is well-favored consistent and stable results in a measurement process. 2. rigorousness Validity helps us to measure what it sets out to measure consistently and in a stable manner. It refers to persistence of systematic error in measurement process (Ndunguru, 2007). The validity of the research results is ensured id adequate physical or statistical control is put in place such that research measurement process produces accurate data. Generally validity is about a researcher quantity what he/she out to measure. 8.MANAGEMENT AND ANALYSIS OF DATA 1. Data Ma nagement Data will be collected from respective sources by using questionnaire, personal interviews. The respondents are randomly selected. However whenever the approached interviewee was not accessible at that time, the next nearest interviewee will be approached. 2. Data Analysis The data collected from questionnaires, interviews and documents is going to be edited, coded and summarized in order to get information relating to problems. The researcher will analyze and test the data using descriptive method, text and schedules, and tables will be used to validate relationship between variables. 3. 9. 3 Data ProcessingThe researcher will use code in data processing. This includes numbering and heading so as to modify and reduce the ambiguity to the reader. Collection of data using questionnaire will be entered in the computer so as to make coding. 3. 9. 4 Data Presentation The findings of the study will be presented in a form of narration description with illustration of tables and diagrams where applicable. REFERENCES AND BIBLIOGRAPHY Immanuel D. Mzava &038 David Hillier (2004) Does Countrys Tax expression determine its Foreign Direct Investment Flow? The African daybook of Finance &038 Management, Volume 141 Barbara Seedha, Lauren Maxwel &038 Joseph Horton (2000) Foreign Direct Investment in Africa The African Journal of Finance &038 Management, Volume 141 Bank of Tanzania (2001) Report on the Study of Foreign reclusive with child(p) Flows in Mainland Tanzania Tanzania Investment Report. Bank of Tanzania (2006) Report on Foreign Private Investment in Tanzania Tanzania Investment Report. Recep Kok &038 Bernur Acikgoz Ersoy (2009) Analyses of FDI determinants in Developing Countries International Journal of Social Economics Volume 36 ? PP 105 123 www. emeraldinsight. com Bhinda, N and M. Martin (1994). east Africa Survey of Foreign Investors, Report by Exocomisti Association for the World Bank. Chege, M (1999). Politics of Development Institutions and National Governance, newspaper presented for Africa in the twenty-first Century Initiative (Washington D. C World Bank) IMF (1999). The Cross-Border Initiative in easterly and Southern Africa, African and Policy Development and Review Department, IMF. Kasekende L. and I. Hussain (1997). Private pileus Flows to Sub-Saharan Africa Whats the Real Story? Paper presented at Seminar, A New Paradigm of Financing Development and Development Cooperation, March 1997, Stockholm. Kasekende L. , D. Kitabire and M. Martin (1998). keen Inflows and Macroeconomic Policy in Sub-Saharan Africa, in G. K. Hellier (1998). Capital Accounts Regimes and Developing Countries (London Macmillan Press)Kasekende L. and A. Bhundia (2000). Attracting Capital Inflow to Africa Essential Elements of a Policy Package. Advanced unchanged Copy. UNCTAD (1999), Foreign Direct Investment in Africa Performance and Potential, (New York and Geneva, 1999). TIC (2002 and beyond). Tanzania Investors Guide Investment Opportu nities and Facilitation (United Republic of Tanzania, March 2002) C. Makunike (Tuesday, September 30, 2008). Tanzanias Foreign Direct Investment inflow up by 15 Percent. (www. tradeafrica. com) D. Makangale (Thursday, January 22, 2009). Investment Climate Attractive (Tanzania Daily News Paper) Macias J. B and Massa I. (June 2009). The Global Financial Crisis and Sub-Saharan Africa The moments of Slowing Private Capital Inflow on Growth Results of ODI Research Presented in advance Form for Discussion and exact Comment. (London Overseas Development Institute). Oyeyinka, B. (2004). How can Africa Benefit from Globalization? ATPS Special Paper Series No. 17 www. tic. co. tz visited on tertiary March 2010 APPENDICES vermiform process I Institute of Finance Management, P. O. Box 3918, Dar es Salaam, 10TH March, 2010. skilful Respondent, I am a student at the Institute of Finance Management undertaking Postgraduate Diploma in Financial Management. I am researching on the Potential Fa ctors that Affect Foreign Direct Investment Inflow in Tanzania.The questionnaire aims at finding data for a research paper to be presented to the Institute of Finance Management as a partial fulfillment of the requirement for the Award of Postgraduate Diploma in Financial Management. I kindly request you to put a tick after appropriate answer and where applicable explain why when call for to do so. The information you give will be strictly confidential and will be used for the purpose of this research. conveying you in advance. Yours truly, Kwareh, Karerema R. concomitant II RESEARCH QUESTIONNAIRE A GENERAL INFORMATION Date completed ________/_______/_________ Centre Name ______________________________________ Name and position of the person completing this questionnaire ____________________________________________________________ _Centre shout _____________________________________________ Tel __________________ Fax _______________ E-mail ____________ disport give details of al ternative person whom I may contact incase I have any questions __________________________________________________________ Date of Commencing Operations _____________/ _____________/ __________ B GENERAL QUESTIONS 1. To what extent have the following macroeconomic factors affected investment in our country? Very buckram +ve effect inexpugnable particular +ve exercise No Effect throttle Strong Very Strong ve Effect +ve effect ve Effect ve Effect 1 2 3 4 5 6 7 At start upNow Fiscal policy( ) ( ) Monetary policy( ) ( ) Government Stability( ) ( ) Please add any additional education ____________________________________________________________ __________________________________________________________________ ______ 2. To what extent have the availability of condition of the following Infrastructures and services affected in our country? Very loyal +ve effectStrong curb +ve Effect No Effect Limited Strong Very Strong ve Effect +ve effect ve Effect ve Effect 1 2 3 4 5 6 7 At start upNow Inland transport (roads, rails)( ) ( ) Access to seaport( ) ( ) air travelport and Air transportation( ) ( ) Electricity supply( ) ( ) Water supply( ) ( ) Please add any additional Information ____________________________________________________________ __________________________________________________________________ ______ 3. To what extent have the following financial factors affected investment in Tanzania? Very strong +ve effectStrong Limited +ve Effect No Effect Limited Strong Very Strong ve Effect +ve effect ve Effect ve Effect 1 2 3 4 5 6 7 At start upNow Inflation( ) ( ) Availability of business finances/credit( ) ( ) Interest rates ( ) ( ) Depreciation of domestic currency( ) ( ) Exchange Control( ) ( )Please add any additional Information ____________________________________________________________ ____________________________________________________________ ____________ 4. To what extent the following governance factors affected investment op portunities in Tanzania? Very strong +ve effectStrong Limited +ve Effect No Effect Limited Strong Very Strong ve Effect +ve effect ve Effect ve Effect 1 2 3 4 5 6 7 At start upNow Regional Trade( ) ( ) Trade policy( ) ( ) Bureaucracy ( ) ( ) Tax collection efficiency( ) ( ) Land law &038 administration( ) ( ) Please add any additional Information ____________________________________________________________ ____________________________________________________________ ____________ 5. Please specify the most important factors that influence your initial decision to invest in Tanzania? ____________________________________________________________ ___________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ______________________________ 6. What is the likely direction of foreign direct investment in Tan zania in the mediocre term? Please tick appropriate box Expansion No Change Contraction 7.What measures can the government undertake to improve investors attractiveness to continue investing in Tanzania and attract new investors? a. ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ b. ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ c. ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ d. ____________________________________________________________ ___________________________________________________________ ____________________________________________________________ Thank you for your time. APPENDIX III TIME SCHEDULE This timetable will be of great help to me as a researcher to organize activities to be carried out and allocate the time accordingly. This will act as my guideline. The estimated time of conducting the research is 9 weeks. Week Activity 1st 2nd Week Preliminary preparation i. e. research proposal, budget, finding the assistant for help if necessary e. t. c. 3rd 4th Week Preparation of questionnaires, visiting the respondents and distribution of questionnaires 5th sixth Week Collection of questionnaire from respondents, analysis of the data, verification and processing 7th eighth Week Revising the paper, re-writing and bidding 9th Week Presenting the paper and defending APPENDIX IV RESEARCH BUDGET 1. 0 STATIONARY TSHS 1. 1 Ream of govern paper x2 7,000 14,000 1. 2 Ream of A4 plain papers x 2 8,000 16,000 1. cheap Disk x 1 50,000 50,000 1. 4 Ball pen, pencil, collection liquified 10,000 2. 0 SECRETARIAL SERVICES 2. 1 Proposal Typing and opinion x 2 copies 100,000 2. 2 Research Typing and printing x 2 copies 150,000 2. 3 Binding 50,000 2. 4 Photocopying of documents 20,000 3. RESEARCH EXPENSES 3. 1 assistance Researcher 80,000 3. 2 Transport to and fro 250,000 3. 3 Breakfast/lunch e. t. c 100,000 3. 4 Consultation 50,000 Sub-total 890,000 + Contingency 30% 1,157,000