The Impact of Governance on FDI In Ethiopia

The low level of Foreign Direct Investment (FDI) inflow in Amhara Region given the vast natural, and historical endowments and relatively cheap labour availability motivated the researcher to conduct study on the association of governance and investment. In this regard, various studies revealed that governance is one of the indispensable factors in bringing growth and development in general and increasing inflow of FDI in particular. Therefore, the general objective of the study is to evaluate the influence of governance on FDI inflow in Amhara Region. However, the empirical findings of the study show Public administration’s Efficiency, Accountability and Decency have no significant influence on the FDI inflow in the Amhara Region in particular, and Ethiopia in general. Therefore, further study should be made to incorporate other factors that affect the FDI performance in the region since the variables of the study are too small to generate sufficient generalizations.