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Fdi-Growth Nexus In Africa: Does Governance Matter?

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  • ADEGOKE IBRAHIM ADELEKE

    (University of Ibadan, Nigeria)

Abstract

This study examined the effects of governance on FDI-growth nexus in Africa both at the aggregated and disaggregated level. It adopted the methodology of panel data technique to examine the interrelationship. The results showed that governance in many African countries was quite weak and thus inhibited growth. When governance was interacted with FDI, it brought about positive and increased growth. This finding was robust to different estimation techniques and disaggregated governance dimensions. The paper suggested that African governments that are desirous of attracting more FDI and thus improving on growth must enhance their governance structure.

Suggested Citation

  • Adegoke Ibrahim Adeleke, 2014. "Fdi-Growth Nexus In Africa: Does Governance Matter?," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 39(1), pages 111-135, March.
    • Handle: RePEc:jed:journl:v:39:y:2014:i:1:p:111-135
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    18. Yen Nguyen & Son Le & Nam Ngo & Huyen Nguyen, 2023. "Impacts of FDI and Environmental Pollution in ASEAN Countries: The Role of Institutions," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 242-250, September.
    19. M. Tahir Suleman, Muhammad Talha Amin, 2015. "The Impact of Sectoral Foreign Direct Investment on Industrial Economic Growth of Pakistan," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 2(1), pages 151-165, March.
    20. Adekunle, Wasiu & Sulaimon, Mubaraq, 2018. "A Re-examination of the Relationship between Foreign Capital Flows and Economic Growth in Nigeria," MPRA Paper 87754, University Library of Munich, Germany.
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    More about this item

    Keywords

    Foreign Direct Investment; Growth; Governance; Panel Data; Africa;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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