TITLE:
Determinants of Foreign Direct Investment Flows to Africa: A Dynamic Panel Data Analysis
AUTHORS:
Oreoluwa O. Atobatele
KEYWORDS:
Foreign Direct Investment, FDI Determinants, Economic Growth, Inflation, Corruption, Policy Terrorism
JOURNAL NAME:
Modern Economy,
Vol.14 No.6,
June
30,
2023
ABSTRACT: Compared to the rest of the world, Africa has not been a major recipient
of foreign direct investment (FDI). In 2013, Africa’s share of FDI inflows to
developing regions was about 7.3 percent and its share of global FDI inflows
was about 3.9 percent. Although FDI inflows to Africa has increased over the
years, the level of FDI that Africa attracts is indeed insufficient compared to
its resource base and its potential need. This
study is aimed at identifying the determinants of FDI inflows to Africa and the
reasons for low FDI inflows to Africa in order to suggest policies that can be
implemented and programs that can be put in place to increase sustainable FDI
inflows to Africa. Several
existing studies on the Determinants of FDI in Africa focus on the traditional
determinants of FDI. However, the contribution of this study to existing
literature lies in the scope, model and method. This
study is organized as follows; section 3 presents a brief review of the
relevant literature on the determinants of FDI, section 4 provides the research
method, section 5 includes the model specification and section 6 presents the
results of the analysis.