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Foreign Direct Investment in Anglophone and Francophone African Countries

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  • Yapatake Kossele Thales Pacific

Abstract

Foreign Direct Investment plays a very significant role both in the economic and social development of a country. Its potential benefits to developing countries has increased in recent years. The main objective of this paper is to examine the determinants which can attract or deter Foreign Direct investment in Anglophone and Francophone African countries. We used Panel Data from 37 countries covering the period 2004-2012. Results from a Hausman test indicated that the Random effect model is appropriate in performing the estimation. The regression results show the strength to protect investors, the time required to start business, human resources, domestic credit to private sector have significant influence on FDI. We also employ interactive variables, allowing for interaction effect between time required to start a business and strength to protect investors. Further, interaction effect is allowed between electricity production and economic growth. The results indicate that the interactive variables have a great influence on FDI inflows to these countries. Electricity production is still a big challenge for most Anglophone and francophone countries. We suggest that African governments should direct their efforts towards production of power in order to maintain the long- run sustainability of FDI in Anglophone and Francophone African countries.

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  • Yapatake Kossele Thales Pacific, 2015. "Foreign Direct Investment in Anglophone and Francophone African Countries," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(12), pages 39-57, December.
    • Handle: RePEc:hur:ijarbs:v:5:y:2015:i:12:p:39-57
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    1. Yapatake Kossele Thales Pacific, 2015. "Foreign Direct Investment in Anglophone and Francophone African Countries," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(11), pages 337-350, November.
    2. Yapatake Kossele Thales Pacific, 2017. "Slow Growth of Foreign Direct Investment in Central African Republic," Global Business Review, International Management Institute, vol. 18(6), pages 1435-1446, December.
    3. Pacific K. T. Yapatake, 2017. "The Slow growth of Foreign Direct Investment in Central African Republic," CEREDEC Working Papers 17/001, Centre de Recherche pour le Développement Economique (CEREDEC).

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