FDI Determinants in Least Recipient Regions: The Case of Sub‐Saharan Africa and MENA

Okafor, Godwin; Piesse, Jenifer; Webster, Allan

doi:10.1111/1467-8268.12298

Cited by 35 publications

(28 citation statements)

References 40 publications

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“…The main results showed that the gross domestic production (GDP) per capita was highly important to enhance FDI. This means that higher production would attract more investing in GCC (similar to Okafor et al, 2017). On the other side, inflation affected the FDI significantly and negatively.…”

Section: Literature Reviewmentioning

confidence: 92%

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Determinants of Foreign Direct Investment in Gulf Cooperation Council (Gcc) Region

Alharthi¹

2018

Proceedings of the 10th Economics &Amp; Finance Conference, Rome

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This study aims to find the main determinants of foreign direct investment (FDI) in Gulf Cooperation Council (GCC) Region using a panel data from 1996-2016. The GCC region is facing new economic reforms as a result of low oil prices when oil is the main product of GDP in GCC. In addition, GCC impose tax in 2018 that would affect economy negatively due to lowering in purchase power. Based on lower prices of oil, Saudi Arabia released a plan called Vision 2030. This vision was announced in 26 April 2016 by Crown Prince Mohammad bin Salman. The main reason behind this vision is to diversify economy. The FDI is one of the most important indicators to realize this diversity of economy. In this study, the data was collected through the United Nations Conference of Trade and Development, World Bank and International Monetary Fund (IMF) databases. The data was analyzed through fixed-effects model and random-effects model. The GDP is found to have a significant and positive impact on FDI. The Arab Spring affected the FDI negatively and significantly through the period of the study.

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Section: Literature Reviewmentioning

confidence: 92%

“…Comprehensive studies claimed that the relationship between FDI and GDP per capita is significant and positive (e.g. Cleeve et al, 2015;Okafor et al, 2017). Few studies proved the opposite result (see Dutt et al, 2017).…”

Section: Hypotheses Formulationmentioning

confidence: 99%

Determinants of Foreign Direct Investment in Gulf Cooperation Council (Gcc) Region

Alharthi¹

2018

Proceedings of the 10th Economics &Amp; Finance Conference, Rome

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“…Corruption is at the forefront of political and economic debates and policies have been defined to reduce it in ECOWAS. As in Okafor et al () and Bonuedi et al (), corruption in this paper is approximated by the index of control of corruption. It reflects the perceptions of the extent to which public power is exercised for private purposes, including small and large forms of corruption, as well as the ‘capture’ of the state by elites and private interests.…”

Section: Methodology and Datamentioning

confidence: 99%

Single Currency in ECOWAS: Is the Proposed Fiscal Convergence Criterion Pro‐Growth?

Amadou¹,

Kebalo²

2019

African Development Review

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To facilitate the introduction of a single currency in Economic Community of West African States (ECOWAS), the fiscal convergence criterion currently proposed by countries limits the public deficit to 3 per cent of GDP. According to the literature, the limitation of the public deficit to a given threshold is the most fundamental norm of the various convergence pacts existing and needed for monetary integration. Through a nonlinear panel data model, this paper tests the validity of the threshold by determining the public deficit threshold not to be exceeded so that fiscal policy has a positive effect on economic growth. Over the decade 2007-2016, this threshold is estimated at 4.74 per cent of GDP. Thus, the paper concludes that the proposed convergence criterion of 3 per cent of GDP is pro-growth. However, in relation to the estimated threshold, there is a room for manoeuvre that can be used for supporting economic growth. Thus, the proposed threshold could be readjusted upward. The analysis also reveals that only four countries in ECOWAS are on the track to respect in the future, the proposed fiscal criterion and therefore are taking an important step toward the adoption of the future currency. The other countries need to make significant fiscal consolidation operations before hoping to adopt the single currency on the basis of fiscal discipline.

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“…Availability of human capital in the form of skilled workers regarded as a great advantage to the firms in their investment adventures in developing countries (Kinda, 2013). An educated workforce has been assumed as an important factor especially for the firms seeking efficiency motive of FDI (Okafor, Piesse, & Webster, 2017). Theory of economics purports that human capital in the shape of education is one of the potent determinants for the influx of FDI (Dunning, 1977).…”

Section: Efficiency-seeking Fdimentioning

confidence: 99%

“…Theory of economics purports that human capital in the shape of education is one of the potent determinants for the influx of FDI (Dunning, 1977). Most of the studies considered various types of measures as proxies for human capital, of which school enrolment ratios and literacy rate are consistently used (Asiedu, 2002;Azemar & Desbordes, 2009;World Bank, 2018a;Kinda, 2013;Kumari & Sharma, 2017;Okafor et al, 2017). The significance of efficiency entails the following hypotheses:…”

Section: Efficiency-seeking Fdimentioning

confidence: 99%

Natural resource or market seeking motive of China’s FDI in asia? New evidence at income and sub-regional level

Kamal

Ullah

Zheng

et al. 2019

Economic Research-Ekonomska Istraživanja

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Asia is a heterogeneous region including countries with distinct features in quite a few facets. This study is designed to unravel the motivations of Chinese FDI in 30 Asian countries (For list of countries see Appendix 1.) during 2003-2016. For estimation, we utilised the Random effect (RE), Fixed effect (FE) and System-GMM (SGMM) methodologies. We transpired that both market and natural resource (mineral richness) seeking motives of Chinese FDI in the whole sample analysis. With respect to income group, we confirmed the market seeking FDI in both high and middleincome countries whereas, mineral richness is priority for Chinese FDI in middle-income group. Thus, Chinese firms targeted middle income developing economies to acquire non-fuel natural resources. Analogously, on the regional basis, the results show that in all regression models, GDP is positive and significant predictor, characterising market seeking FDI by Chinese firms in West, East and South East Asia. In resource seeking motive, among the two types of natural resources, mineral richness affect Chinese FDI positively in East & South East Asia. In a nutshell, seeking market is the common motive for Chinese FDI in the entire sample, whereas the resource seeking motive varies across the income groups and regions.

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FDI Determinants in Least Recipient Regions: The Case of Sub‐Saharan Africa and MENA

Cited by 35 publications

References 40 publications

Determinants of Foreign Direct Investment in Gulf Cooperation Council (Gcc) Region

Determinants of Foreign Direct Investment in Gulf Cooperation Council (Gcc) Region

Single Currency in ECOWAS: Is the Proposed Fiscal Convergence Criterion Pro‐Growth?

Natural resource or market seeking motive of China’s FDI in asia? New evidence at income and sub-regional level

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