2019
DOI: 10.11130/jei.2019.34.2.346
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Networking for Foreign Direct Investment in Africa: How important are ICT Environment and Financial Sector Development?

Abstract: Studies on the drivers of Foreign Direct Investment (FDI) in Africa have not rigorously examined whether recent advances in the continent's Information, Communication and Technology (ICT) infrastructure and financial development have any role in attracting foreign capital. This study reexamines the determinants of FDI inflows, paying special attention to the ICT and financial sector environments. By relying on a panel dataset covering 46 countries in sub-Saharan Africa over the period 1980~2016, using the gene… Show more

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Cited by 21 publications
(15 citation statements)
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References 40 publications
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“…Thus, the estimated coefficient of the variable "INTERNET" partially reflects the effect of more general investment in information and technology rather than just the effect of Internet access (Clark, 2008: page 19). Studies such as Ibrahim et al (2019) underlined that Internet penetration can be considered as a proxy for ICT among other proxies for ICT.…”
Section: A Model Specificationmentioning
confidence: 99%
See 1 more Smart Citation
“…Thus, the estimated coefficient of the variable "INTERNET" partially reflects the effect of more general investment in information and technology rather than just the effect of Internet access (Clark, 2008: page 19). Studies such as Ibrahim et al (2019) underlined that Internet penetration can be considered as a proxy for ICT among other proxies for ICT.…”
Section: A Model Specificationmentioning
confidence: 99%
“…Several empirical studies that focus on the determinants of services exports have controlled for the effect of ICT (proxied by the level of Internet access). The Internet could promote international trade by facilitating commercial transactions (e.g., Vemuri & Siddiqi, 2009), reducing the communication costs between the exporting and importing countries (e.g., Fink et al, 2005), reducing the ill effects of geographical remoteness on countries' integration into the world trade in commercial services (Gnangnon & Iyer, 2018), promoting FDI inflows (e.g., Choi, 2003;Ibrahim et al, 2019), enhancing competition, and reducing the market-specific sunk costs for trade in goods (e.g., Freund & Weinhold, 2004). Gani and Clemes (2013) contended that advances in digital information technology significantly impact the services sector as it allows acceleration in the creation of networks, new markets, and trade transactions among new trading partners.…”
mentioning
confidence: 99%
“…(4) Infrastructure. The quality of the infrastructure is an important aspect of assessing the host country's investment environment [53], especially the transport infrastructure. If a country's infrastructure is too poor, it will significantly restrict the p of investment projects.…”
Section: Indicators For Measuring Investment Environmentmentioning
confidence: 99%
“…This ongoing debate suggests that further research on enterprise IT investment is needed. At present, the research studies about the performance of IT investment on firms mainly focus on stock market performance (Chai et al, 2011;Boyko et al, 2014), firm financial performance (Hendricks et al, 2007;Ibrahim et al, 2019) and business operation performance (Gartner and Padman, 2017;Khuntia et al, 2018). According to Boyko et al (2014), the Russian stock market seems to respond more positively to innovative IT investments than to noninnovative investments and IT investments through a global vendor are received negatively by the stock market.…”
Section: Introductionmentioning
confidence: 99%