IDEAS home Printed from https://ideas.repec.org/a/eme/jeaspp/jeas-02-2019-0017.html
   My bibliography  Save this article

Investigating the role of disaggregated economic freedom measures and FDI on human development in Africa

Author

Listed:
  • Kofi Korle
  • Anthony Amoah
  • George Hughes
  • Paragon Pomeyie
  • Godson Ahiabor

Abstract

Purpose - The purpose of the study is to investigate the role of disaggregated economic freedom measures in the foreign direct investment (FDI) and human development nexus. Design/methodology/approach - The study uses a panel data of 32 selected African countries from 1996 to 2017. A dynamic ordinary least squares (DOLS) with fixed effects and instrumental variable (IV) econometric techniques was used to address issues of endogeneity and serial correlation commonly associated with panel time series data. Findings - The Results indicate that FDI without accounting for absorptive factors has a positive but insignificant effect on human development for the selected African countries. However, FDI has a positive and significant effect on human development when interacted with measures of economic freedom such as investment freedom, business freedom and financial freedom. In contrast, yet plausible, FDI has a negative influence when interacted with property rights, trade freedom, government integrity and tax burden. Practical implications - The study posits that to attract FDI into Africa with the purpose of improving human development, relevant absorptive capacities such as business, investment and financial freedom environment are critical. However, excessive capital flight and government interference through taxation and abuse of property rights should be controlled if the continent seeks to promote human development through FDI. Originality/value - The novelty and originality of the study, are evident in the use of disaggregated measures of economic freedom as comprehensive absorptive capacities to examine how they complement FDI to impact on human development in Africa.

Suggested Citation

  • Kofi Korle & Anthony Amoah & George Hughes & Paragon Pomeyie & Godson Ahiabor, 2020. "Investigating the role of disaggregated economic freedom measures and FDI on human development in Africa," Journal of Economic and Administrative Sciences, Emerald Group Publishing Limited, vol. 36(4), pages 303-321, June.
    • Handle: RePEc:eme:jeaspp:jeas-02-2019-0017
    DOI: 10.1108/JEAS-02-2019-0017
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/JEAS-02-2019-0017/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/JEAS-02-2019-0017/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/JEAS-02-2019-0017?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Isaac K. Ofori & Andreas Freytag & Simplice A. Asongu, 2023. "Economic globalisation and Africa's quest for greener and more inclusive growth: The missing link," Jena Economics Research Papers 2023-004, Friedrich-Schiller-University Jena.
    2. Isaac K. Ofori & Andreas Freytag & Simplice A. Asongu, 2023. "Economic globalisation and Africa’s quest for greener and more inclusive growth: The missing link," Working Papers 23/032, European Xtramile Centre of African Studies (EXCAS).
    3. Anthony Amoah & Carlos Tetteh & Kofi Korle & Samuel Howard Quartey, 2022. "Human Development and Net Migration: the Ghanaian Experience," Journal of International Migration and Integration, Springer, vol. 23(3), pages 1147-1172, September.
    4. Megbowon Ebenezer T. & Mukarumbwa Peter & Ojo Oloruntimilehin S. & Ojeyinka Titus A., 2023. "Does Urbanization Matter For Poverty Reduction in Nigeria: An Empirical Evidence From Autoregressive Distributed Lag (ARDL) Estimation," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 33(3), pages 1-20, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:jeaspp:jeas-02-2019-0017. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.