Growth Effects of Foreign Direct Investment (FDI) From China and Other Sources in Africa: The Role of Institutional Quality

Ngundu, Marvellous; Ngepah, Nicholas

doi:10.31014/aior.1992.02.03.148

Cited by 3 publications

(1 citation statement)

References 9 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In the monitored countries, foreign direct investment represented a significant factor for economic growth that culminated especially at the turn of the millennium. Their impact was influenced by institutional heterogeneity [33], the structure of the economy [34], and by social factors [35]. The effects of foreign direct investment on the development of companies and the economy examined [36].…”

Section: Literature Reviewmentioning

confidence: 99%

Capital Intensity and Labour Productivity in Waste Companies

et al. 2020

View full text Add to dashboard Cite

At first glance, it might seem that the economic aspects of sustainability in terms of waste management have resolved themselves already in areas of activity. In reality, however, companies in this area also need to address how to ensure their future operations. The primary priority for companies in the area of waste disposal is to provide efficient collection, sorting, and recycling, effectively using company resources. The goal of this paper was to explore the relation between capital intensity and the productivity of labour in companies in the waste sector in the countries of the Visegrad Group (V4), and consequently, to define the bonds among economic indicators in the form of the economic normal. The study used data from 875 enterprises from the V4 countries, which were divided into categories according to the development of capital intensity and labour productivity. This study found that companies mainly implement modest investment development, which was characterised by the high effectiveness of capital usage, diminishing labour productivity, low labour endowment, but at the same time, increasing profitability. The reason for the labour productivity decrease was due to the growing proportional cost of labour. This trend was typical for most of the large-sized and middle-sized companies, whereas for most small companies, there was a dominant severe capital development with decreasing labour productivity and relatively high profitability of incomes. The smallest representation takes companies with capital-intensive development with the positive development of all monitored economic indicators.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Capital Intensity and Labour Productivity in Waste Companies

et al. 2020

View full text Add to dashboard Cite

show abstract

The relationship between FDI, political risk and institutional quality in sub-Saharan Africa

Matima

Gossel

2022

The Journal of International Trade & Economic Development

View full text Add to dashboard Cite

Çi̇n’i̇n Afri̇ka'daki̇ Doğrudan Yabanci Sermaye Yatirimlarinin Afri̇ka Ülkeleri̇ndeki̇ Ekonomi̇k Etki̇si̇

Soyyiğit

2020

Cumhuriyet Üniversitesi İktisadi Ve İdari Bilimler Dergisi

View full text Add to dashboard Cite

Africa has been subjected to the colonial activities of Western countries in the historical process due to its natural resources and mineral deposits. China has had an increasing interest in the region since 2000s. Some of the opinions regarding these investments are that these investments differ from Western-style investments by bringing infrastructure and productivity to the region; others argue that these investments serve neo-mercantilist policies of China.Within the scope of these policies, which are called Chopsticks mercantilism, it is widely stated that these investments do not contribute positively to the development process of Chinese economy. In this study, based on this discussion, the effect of foreign direct investment in 10 African countries, in where China has the highest foreign direct investment stocks, on some macroeconomic indicators such as employment, industrial employment and per capita income has been examined via random coefficient panel regression method. The present study covers the period from 2003 to 2017. Findings indicate that foreign direct investment has a significantly positive effect on per capita income. These foreign direct investment stocks in South Africa and Angola positively affect the employment rate, while negatively affecting industrial employment. In Congo, Ghana and Tanzania, the opposite is true. In other words; in these countries, China's foreign direct investment had negative effect employment, while it had positive effect on industrial employment. In Algeria, these investments had a positive impact on both the employment rate and industrial employment. These results reveal when evaluated with top export sectors of the countries that production and export structure of countries affects the impact of FDI on their employment and industrial employment. That's why, these countries are required to promote production activities of FDI in manufacturing industry rather than mineral extraction and mining.

show abstract

Growth Effects of Foreign Direct Investment (FDI) From China and Other Sources in Africa: The Role of Institutional Quality

Abstract: The Journal of Economics and Business is an Open Access publication. It may be read, copied, and distributed free of charge according to the conditions of the Creative Commons Attribution 4.0 International license.

Cited by 3 publications

References 9 publications

Capital Intensity and Labour Productivity in Waste Companies

Capital Intensity and Labour Productivity in Waste Companies

The relationship between FDI, political risk and institutional quality in sub-Saharan Africa

Çi̇n’i̇n Afri̇ka'daki̇ Doğrudan Yabanci Sermaye Yatirimlarinin Afri̇ka Ülkeleri̇ndeki̇ Ekonomi̇k Etki̇si̇

Contact Info

Product

Resources

About