Authors : Felister Benitho Chaula; Yin Wang; Beatrix Fredrick Gwanchele; Wahab Afolabi Azeez; Noreen Gafura

Volume/Issue : Volume 11 - 2026, Issue 1 - January

Google Scholar : https://tinyurl.com/46zv9f9x

Scribd : https://tinyurl.com/667skn6y

DOI : https://doi.org/10.38124/ijisrt/26jan784

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.

Abstract : This paper explores the role of Foreign Direct Investment (FDI) inflows in promoting manufactured exports in East Africa and investigates how public investment influences this relationship. Using a panel dataset covering five East African Community (EAC) countries like Kenya, Tanzania, Uganda, Rwanda, and Burundi, over the period 2000–2023, the study employs fixed-effects and system-GMM estimation techniques to address endogeneity and unobserved heterogeneity. The findings indicate that FDI inflows have a positive and significant effect on manufactured exports. Importantly, this effect is amplified in countries with higher levels of public investment in infrastructure and human capital, suggesting that strategic government spending strengthens the capacity of FDI to foster industrial export growth. The results underscore the need for coordinated policies that align public investment with efforts to attract FDI, thereby supporting sustainable, export-driven industrialization in the region.

Keywords : Foreign Direct Investment, Manufactured Exports, Public Investment, East Africa, Industrialization, Panel GMM.

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