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Effect of Foreign Direct Investment on Human Development in West Africa

Author

Listed:
  • Mohammed Musa Adamu

    (Department of Economics, Bingham University, Karu- Nigeria)

  • Associate Prof Obumneke Ezie PhD.

    (Department of Economics, Bingham University, Karu- Nigeria)

  • Dr. Marvelous Aigbedion PhD

    (Department of Economics, Bingham University, Karu- Nigeria)

Abstract

The study examined the differential effect of foreign direct investment on human development in West Africa using panel data from 2010 to 2022. The study adopted the Panel Quantile regression in analyzing the data and the study found noticeable variations across the 25th, 50th and 75th quantile levels in the effect of FDI on human development in West Africa. The result of the study found that FDI has negative effect on human development in West African countries with low HDI while it has positive effect on human development in West African countries with high HDI and the effect is stronger in countries at the 75th quantile HDI level. The study therefore recommends that West African countries should solve the insecurity and other macroeconomic problems facing the region to direct the region to a sustaining growth path that will attract more FDIs.

Suggested Citation

  • Mohammed Musa Adamu & Associate Prof Obumneke Ezie PhD. & Dr. Marvelous Aigbedion PhD, 2025. "Effect of Foreign Direct Investment on Human Development in West Africa," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(1), pages 3590-3599, January.
    • Handle: RePEc:bcp:journl:v:9:y:2025:i:1:p:3590-3599
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    References listed on IDEAS

    as
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    2. Fisayo Fagbemi & Kehinde Mary Bello, 2019. "Foreign Direct Investment - Growth Linkage in Sub-Saharan Africa: Is Governance a Mediating Factor?," International Journal of Business, Economics and Management, Conscientia Beam, vol. 6(2), pages 111-129.
    3. Dani Rodrik, 1998. "Why Do More Open Economies Have Bigger Governments?," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 997-1032, October.
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    5. Fisayo Fagbemi & Kehinde Mary Bello, 2019. "Foreign Direct Investment - Growth Linkage in Sub-Saharan Africa: Is Governance a Mediating Factor?," International Journal of Business, Economics and Management, Conscientia Beam, vol. 6(2), pages 111-129.
    6. Korhan K. Gökmenoğlu & Martins Olugbenga Apinran & Nigar Taşpınar, 2018. "Impact of Foreign Direct Investment on Human Development Index in Nigeria," Business and Economics Research Journal, Bursa Uludag University, Faculty of Economics and Administrative Sciences, vol. 9(1), pages 1-13.
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