Foreign investment boosts domestic growth in Ethiopia, but not overall economy.
The study looked at how foreign investment affects Ethiopia's economy. They found that foreign investment boosts domestic investment in the country. To increase domestic investment, the government needs to attract more foreign investment by improving infrastructure and policies. However, foreign investment doesn't directly impact economic growth in Ethiopia. Instead, domestic public and private investments play a significant role in driving the country's GDP growth. To achieve long-term economic growth, the government should focus on liberalizing markets, reforming taxes, and diversifying the economy.