Economics

Institutional quality, foreign direct investment, and economic development in sub-Saharan Africa

F. B. Adegboye, R. Osabohien, et al.

This intriguing study by Folasade Bosede Adegboye and colleagues delves into how institutional challenges shape foreign direct investment (FDI) inflows in sub-Saharan Africa, revealing the critical connection between FDI and economic development. The findings highlight the need for improved institutional quality to leverage domestic resources effectively.

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Playback language: English

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Abstract

This study investigates the impact of institutional challenges on foreign direct investment (FDI) inflows and their effect on economic development in sub-Saharan Africa (SSA). Using pooled data from 30 SSA countries (2000-2018), the study employs fixed and random effect regression models. Findings reveal that FDI is crucial for SSA's economic development, but institutional quality significantly affects FDI inflows, leading to underutilization of domestic resources. The study recommends improving institutional quality to encourage FDI and enhance domestic investment.

Publisher

HUMANITIES AND SOCIAL SCIENCES COMMUNICATIONS

Published On

Jul 16, 2020

Authors

Folasade Bosede Adegboye, Romanus Osabohien, Felicia O. Olokoyo, Oluwatoyin Matthew, Oluwasogo Adediran

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