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Trade liberalization policies and foreign direct investment inflows in Africa: Evidence from new measures of trade liberalization

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  • Nathaniel Kwapong Obuobi
  • John Gartchie Gatsi
  • Michael Owusu Appiah
  • Seyram Kawor
  • Emmanuel Kwakye Amoah
  • Mac Junior Abeka

Abstract

This paper examines the role that trade liberalisation policies play in attracting FDI flows to African economies from 2000 to 2017. This study contributes to the extant literature on the relevance of trade liberalisation policies in developing economies and in particular, African Countries. By employing new measures for trade liberalisation policies, the study estimated a System Generalized Method of Moment model to examine the relationship between trade liberalisation policies and FDI inflows to Africa. The findings suggest that the institutionalisation of policies to enhance trade liberalisation would be germane in attracting higher levels of FDI flows to African economies.

Suggested Citation

  • Nathaniel Kwapong Obuobi & John Gartchie Gatsi & Michael Owusu Appiah & Seyram Kawor & Emmanuel Kwakye Amoah & Mac Junior Abeka, 2022. "Trade liberalization policies and foreign direct investment inflows in Africa: Evidence from new measures of trade liberalization," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 31(3), pages 394-409, April.
    • Handle: RePEc:taf:jitecd:v:31:y:2022:i:3:p:394-409
    DOI: 10.1080/09638199.2021.1983009
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    Cited by:

    1. Andrew E. Hansen-Addy & Davide M. Parrilli & Ishmael Tingbani, 2024. "The impact of trade facilitation on African SMEs’ performance," Small Business Economics, Springer, vol. 62(1), pages 105-131, January.
    2. Samuel Kwaku Agyei & Nathaniel Kwapong Obuobi & Mohammed Zangina Isshaq & Mac Junior Abeka & John Gartchie Gatsi & Ebenezer Boateng & Emmanuel Kwakye Amoah, 2022. "Country-Level corporate governance and Foreign Portfolio Investments in Sub-Saharan Africa: The moderating role of institutional quality," Cogent Economics & Finance, Taylor & Francis Journals, vol. 10(1), pages 2106636-210, December.
    3. Pousseni Bakouan & Mahamadou Diarra & Idrissa M. Ouedraogo, 2024. "How Can Tariff Elimination and Trade Facilitation Affect East African Economies?," Foreign Trade Review, , vol. 59(1), pages 117-145, February.

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