FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH IN SUB-SAHARAN AFRICA (SSA)

AUTHOR:  OKEYIKA KENECHUKWU OKEZIE

DEPARTMENT: ECONOMICS

AFFILIATION: NNAMDI AZIKIWE UNIVERSITY, AWKA

Motivated by the slow pace of growth in the region vis-à-vis the amount of Foreign Direct Investment (FDI) received. This study takes a look at the effect of FDI on economic growth in Sub-Saharan Africa (SSA). The study also went further to see if FDI affects domestic savings in SSA. Utilizing panel data for 45 SSA countries [for the selected, relevant predictors] for a period of four (4) decades; by way of pooled regression, it was found that: FDI has a negative significant effect on growth (especially for the countries with high FDI inflows), while on the other hand have a significant positive effect on domestic savings in SSA (most especially for the countries with high FDI inflows). It is also discovered that capital formation, labour force, net export, and government expenditure are all determinants of growth in SSA. Following this findings the study recommends that Effort should be geared in attracting foreign capital into other growth- inducing sectors of the economy, especially the manufacturing and agricultural sectors. These two sectors have high potentials for growth if adequately funded, among others.

TO VIEW THE FULL CONTENT OF THIS DOCUMENT, PLEASE VISIT THE UNIZIK LIBRARY WEBSITE USING THIS LINK, http://naulibrary.org/dglibrary/admin/book_directory/Thesis/11082.pdf

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