The aim of this study is to examine the impact of Foreign Direct Investment(FDI) spillover measured by increase in FDI inflow and decrease in FDI inflow on the size of trade growth proxy by trade (% GDP) in Gambia, Ghana, Nigeria, and Sierra Leone from 1970 to 2017. The study employed Non-linear ARDL framework. The result showed that increase in FDI inflow is necessary to cause trade growth in Sierra Leone in the long-run, and is not an effective source of capital flow in trade growth in Gambia, Ghana, and Nigeria. Also, decrease in FDI inflow generated a decline in the long-run trade size growth in Gambia, Ghana, Nigeria and positive impact on trade size growth in Sierra Leone. Thus, FDI spillover effects vary from country to country in selected West African Monetary Zone (WAMZ) country. There should be serious FDI inflow based corporate governance mechanisms that will coordinate the effective utilization and deployment of FDI inflows to core areas of economic need. FDI inflow should be meant to find those sectors that can optimally use it to enhance productivity.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
customersupport@researchsolutions.com
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.