Project Staff

Bethuel Kinuthia
PhD researcher
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E-mail	BKinuthia@ascleiden.nl
Title PhD research: *The role of FDI in economic development: Malaysia and Kenya compared.* Summary:There is no doubt that Foreign Direct Investment has been crucial in Malaysia's development trajectory. In comparison with Malaysia the amount of FDI in Kenya is minimal, but in comparison with neighbouring Tanzania and Uganda, Kenya is a major FDI recipient. By African standards, Kenya's development strategies have long afforded major roles to private enterprise and foreign investment. In contrast to Malaysia, however, in Kenya this emphasis on private capital has not been accompanied by a successful drive towards industrialization. On the contrary, industry in Kenya has in recent decades contracted quite severely as import-substituting manufacturers producing for the East African market closed down. Kenya has attracted FDI mainly in two sectors: tourism and horticulture. However with fertile land in short supply and population growth rates high, the need for industrial employment is strongly felt. Comparison between the two countries is expected to yield insight into the relationship between FDI and industrialization, and into the question of whether success in attracting FDI depends mainly on locational advantages or on policy measures. The results of Kinuthia's recent research in Malaysia suggest that among the most important of Malaysia's advantages lies in its provision of power, transport and communications infrastructure.