Date of Graduation

5-2018

Document Type

Thesis

Degree Name

Bachelor of Science in Agricultural, Food and Life Sciences

Degree Level

Undergraduate

Department

Agricultural Economics and Agribusiness

Advisor

Nalley, Lanier

Reader

Popp, Jennie

Second Reader

Dixon, Bruce

Abstract

Foreign Direct Investment (FDI) has the potential to increase economic activity and improve GDP growth in low-income countries, but can hinder economic development (quality of life improvements) if not sustainable and holistic in manner. Africa serves as a host to many cases of FDI focused on economic growth, but not necessarily improving the quality of life for its citizens. FDI has spread throughout the African continent, where many countries are well endowed with natural resources, like minerals and coal. These economies have experienced rapid GDP growth with few benefits reaching citizens of the host country. Mozambique is a low-income country in Africa with rampant food insecurity, significant health issues, and a struggling economy. Mozambique is rich in coal reserves, leading to increases in mining financed through FDI. Resource extraction in Mozambique has resulted in one of the fastest growing economies in the world, but economic development has remained stagnant. New Horizons is a large-scale poultry operation in the city of Nampula, Mozambique that was founded with a mission of increasing access to protein products in the region and creating employment opportunities. New Horizons strives to operate a sustainable business that contributes to both economic growth and development in Nampula. The objective of this study was to implement a survey of New Horizons employees to determine how employment at a holistic FDI venture was associated with economic growth (increased income) and economic development (improvements in quality of life). This survey assessed indicators of quality of life such as improvements to housing, updated modes of transportation, increased likelihood of sending children to school, and ability to support additional household members after employment. The results indicate that employees were both able to increase their revenue and improve the quality of life of themselves and their families. Results from this study will be utilized by leadership at New Horizons to assess their impact on the lives of their employees. Additionally, this study could serve as a case study of a unique example of FDI that focuses on both profitability and development that can be evaluated by developmental agencies, local or national governments, and other non-governmental organizations.

Keywords

Mozambique, Foreign Direct Investment, FDI, Africa, Poultry

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