Foreign investment and growth: A case of selected African economies

Abstract

The purpose of the study is to indicate how foreign investment impact on economic growth in some selected African economies. Research Design & Methods: The study employed the Panel ARDL (PMG) technique to estimate the impact of foreign investment proxy as FDI net inflows on Growth measured as GDP per capita. Findings: The results of Panel ARDL indicate that foreign investment has a positive impact on economic growth as well as a positive sign of trade openness, inflation, and labor. The study stresses that for increasing economic growth there is a need to seek more foreign investments, increase trade openness and inflation at the same time improve upon employment conditions in selected African developing countries. Contribution & Value Added: The novelty of this research is in presenting and emphasizing the significance of FDI in some selected African countries on economic growth. Article type: research paper

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