RUAHA CATHOLIC UNIVERSITY

The main objective of this study was to assess the significant factors that influence the inflows of FDI in Tanzania: A case of selected foreign investments companies in Dar es Salaam and Iringa. The specific research objectives of the study were to assess the effect of regulations on natural resources towards inflows of FDI in Tanzania, to examine the effect of Inflation on inflows of FDI in Tanzania, and to examine the effect of economic-political stability on inflows of FDI in Tanzania. Relevant empirical and theoretical literature was reviewed to support the objectives of the study and to form a basis for discussion of results. The study employed a quantitative research design. Structured questionnaires were used to collect data from169 investors and employees of foreign investment companies and tourism enterprises in Iringa and Dar es Salaam. Data analysis was done using multiple regression analysis and correlation analysis by the use of software programs statistical package for social science (SPSS). Findings of Cronbach alpha indicated that all variables which were included in this study had achieved an accepted range of internal consistent by yielding a Cronbach alpha p-value greater than 0.6. Using multiple regression analysis findings revealed that regulations on natural resources, inflation and economic-political stability are significant factors that influencing the inflows of FDI. From the finding the study concludes regulations on natural resources had a positive significant effect on inflows of FDI, Inflation had a positive significant effect on inflows of FDI and economic-political stability had a positive significant effect on inflows of FDI in Tanzania. From the conclusions the study recommends that with regard to regulations on natural resources government should make more efforts to ensure that the all regulations related with natural resources are fairly so as to attract more FDI inflows to Tanzanian economy.

Inflows of FDI, Regulations on natural resources, Inflation, Economic-political stability