The impact of Ease of Doing Business on Foreign Direct Investment

The present research have been undertaken to study the influence of EODB on the FDI inflows/GDP in Rwanda from the period of 2006 to 2012 in Rwanda and has been extended to EAC countries to identify its position in the region. EODB indicators variables have been used as independent variables and FDI inflows/DGP as dependent variable. Two approaches of analysis have been used in this study such as descriptive analysis and regression analysis. Descriptive analysis has been used to provide overviews of FDI inflows /GDP and the evolution of the EODB indicators expressed in scores for the period of the study across countries have been described. The findings from descriptive analysis indicate that all indicators of ease do not have the increasing pattern across countries and they are some indicators that show static pattern, even a decreasing pattern alongside the years. The overall analysis in the indicators of EODB reveals that, on one hand that Rwanda is doing well in EODB across countries of EAC; on the other hand the evolution of FDI ratio across five countries in the seven years indicates a high fluctuation across countries.