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Does petroleum resources or market size drive foreign direct investment in Africa? New evidence from time-series analysis

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  • Oro, Oro Ufuo
  • Alagidede, Imoptep Paul

Abstract

Market size and petroleum resources are widely regarded as the main drivers of foreign direct investment (FDI) both in the developed and developing countries. How accurate is this claim in African? We investigated this question using both the panel and time-series data of the forty-nine African countries. Our finding suggests mining of mineral ore supported by the availability of relatively cheap labour as the key driver of FDI in Africa. We recommend country-specific research to inform countries’ policy reforms.

Suggested Citation

  • Oro, Oro Ufuo & Alagidede, Imoptep Paul, 2021. "Does petroleum resources or market size drive foreign direct investment in Africa? New evidence from time-series analysis," Resources Policy, Elsevier, vol. 71(C).
    • Handle: RePEc:eee:jrpoli:v:71:y:2021:i:c:s030142072100009x
    DOI: 10.1016/j.resourpol.2021.101992
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