IDEAS home Printed from https://ideas.repec.org/h/spr/aaechp/978-3-319-44787-2_2.html

Structural and Institutional Determinants of Investment Activity in Africa

In: Investment and Competitiveness in Africa

Author

Listed:
  • Chuku Chuku

    (University of Manchester
    University of Uyo
    African Economic Research Consortium (AERC))

  • Kenneth Onye

    (University of Uyo)

  • Hycent Ajah

    (University of Uyo)

Abstract

This paper considers the structural and institutional determinants of investment activity in selected African countries within a neoclassical growth framework. Non-parametric regression techniques, generalized method of moments and a family of panel data estimation techniques are utilized to uncover the intricacies of the relationship. Four main findings emerge; (i) financial openness and institutional quality are the most robust structural and institutional determinants of investment activity respectively, (ii) there is evidence of nonlinearity in the relationship and there exist a threshold level of financial openness that achieves the highest level of investment, (iii) the inhibiting effect of financial openness beyond the threshold is potentially mitigated by higher levels of institutional quality, (iv) promoting institutional quality is an effective strategy for facilitating investment activity in Africa.

Suggested Citation

  • Chuku Chuku & Kenneth Onye & Hycent Ajah, 2017. "Structural and Institutional Determinants of Investment Activity in Africa," Advances in African Economic, Social and Political Development, in: Diery Seck (ed.), Investment and Competitiveness in Africa, pages 25-50, Springer.
    • Handle: RePEc:spr:aaechp:978-3-319-44787-2_2
    DOI: 10.1007/978-3-319-44787-2_2
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chimere O. Iheonu, 2019. "Governance and Domestic Investment in Africa," Working Papers 19/001, European Xtramile Centre of African Studies (EXCAS).
    2. Appiah-Otoo, Isaac & Ampah, Jeffrey Dankwa & Chen, Xudong, 2025. "Governance, financial openness, and renewable energy investment in Africa," Journal of Policy Modeling, Elsevier, vol. 47(5), pages 958-976.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:aaechp:978-3-319-44787-2_2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.