The Effect of Foreign Direct Investment on Poverty Alleviation in East Africa Countries

Chindengwike, James

doi:10.1956/jge.v18i1.634

Cited by 7 publications

(4 citation statements)

References 17 publications

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“…on the other hand, Fauzel, Seetanah, and Sannassee (2015) adopted dynamic Panel vector error correction model that discovered a significant negative association between the factors. On the contrary, FDI inflow helped in poverty reduction in Nepal and Sri Lanka while increasing poverty in Pakistan and Bangladesh (Chindengwike, 2022a;Mahmood & Chaudhary, 2012). Lazreg and Zouari (2018) have also proved through unit root test of co-integration, the model error correction of FMOLS and Granger causality that FDI and poverty have negative correlation to each other in Pakistan.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Lazreg and Zouari (2018) have also proved through unit root test of co-integration, the model error correction of FMOLS and Granger causality that FDI and poverty have negative correlation to each other in Pakistan. (Chindengwike, 2022a) disclosed that FDI was in a positive relation to the poverty alleviation among the developing and underdeveloped countries using time series data analysis from 1987-2017 for Tanzania. On the other hand, the GINI index revealed that FDI tends to increase poverty.…”

Section: Literature Reviewmentioning

confidence: 99%

“…WTO ( World Trade Organization), NAFTA (North American Free Trade Agreement), GATT( General Agreement on Tariffs and Trade), and ASEAN( Association of South-East Asian Nations have been directed toward improving international markets and trade by reducing market range through foreign investment (Muhammad & Ijirshar, 2015;Shamim, Azeem, & Naqvi, 2014). Moreover, FDI contributed to reduce technical gap and investment (Chindengwike, 2022a).…”

Section: Introductionmentioning

confidence: 99%

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Effect of Foreign Direct Investment and Trade Openness on the Poverty Alleviation in Burundi – Sub African Country: ARDL (Co-integration) Approach

Ilyas

Banaras

Javaid

et al. 2023

Pak. J. Humanit. Soc. Sci

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International Trade and Foreign Direct Investment openness are crucial for economic growth and development. These are equally significant for developed and under-developed countries. The study’s major goal was to look at how foreign direct investment, inflation, GDP and trade openness affected the poverty alleviation in Sub-Saharan African Countries. A country where half of the population lives below the poverty. Annual data for the period 1990 to 2021 gathered from World Development Indicators database to investigate the long run & short run effects of the independent variables for the Sub-Saharan African countries by using Auto-regressive and Lag distributive (Co-integration) model. The findings revealed negative long run influence of foreign direct investment and GDP to poverty head count ratio. The shreds of Evidence also showed that FDI has not shown any distinctive effect on poverty in a shorter period. Moreover, GDP, trade openness and inflation are also effective in reducing poverty in short run. While inflation urges the investors to do more investment in production sector that reduces unemployment and poverty in the end. The study suggested the government officials, policymakers, and investors, to invest more in the poor countries. As FDI is crucial in creating jobs for the unemployed population that lead to the rise in income and living standard of the people. Moreover, the study suggested questioning some other factors causing poverty.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Effect of Foreign Direct Investment and Trade Openness on the Poverty Alleviation in Burundi – Sub African Country: ARDL (Co-integration) Approach

Ilyas

Banaras

Javaid

et al. 2023

Pak. J. Humanit. Soc. Sci

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“…The study applied the ARDL model and found that FDI inflows, TOP and GDP considerably reduce the level of poverty both in the short and long run. Likewise, Chindengweike (2022) examined the effect of FDI on poverty alleviation for a panel of 31 East African countries from 1987 to 2018 and used a multiple linear regression estimator. The overall empirical result revealed that FDI significantly decreased poverty over time.…”

Section: Theoretical Review and Empirical Reviewmentioning

confidence: 99%

How responsive is the poverty to the foreign direct investment inflows in Nigeria? Evidence from linear and non-linear ARDL

Haruna

Hassan

Ahmad

2022

IJSE

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PurposeThe aim is to examine the long run and short run linear and non-linear impact of foreign direct investment (FDI) inflows on poverty in Nigeria from 1980 to 2019.Design/methodology/approachThe Augmented Dickey Fuller, Phillips Perron and Kwiatkowski-Phillips-Schmidt-Shin unit root tests and bounds test were used to tests the series stationarity and co-integration, respectively. Autoregressive Distributive Lag (ARDL) and non-linear and linear autoregressive Distributive Lag (NARDL) estimators are employed to examine the long run and short run impact of the coefficients of the variables and diagnostic check.FindingsThe study finds that the variables are integrated at a level I(0) and the first difference I(I) and co-integrated. The ARDL estimator indicates that FDI significantly reduces poverty in the long and short run. The findings under NARDL shows FDI positive shock and FDI negative shock reduces poverty substantially in the long-short run, respectively. The error correction term is negative and significant.Research limitations/implicationsThis study is limited to a single country (time series) and less informative compared with the panel data study with much informative and free from hetero-scedasticity. Future studies should consider panel data using a similar or dissimilar approach.Practical implicationsFDI inflows stimulate growth, thereby creating job openings, transfer of modern technology and reduce poverty and demonstrate that, if the finding integrated into policy actions, the government would attract FDI inflows for the real sector of the economy.Social implicationsFDI inflows lead to environmental degradation if inferior technology is use in the host economy, especially the weak environmental regulations in Nigeria.Originality/valueThe authors find no study that applied both ARDL and NARDL estimator, selection of variables measurement and time frame for the study in the context of Nigeria.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-08-2020-0530.

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Does environmental degradation matter for poverty? Clarifying the nexus between FDI, environmental degradation, renewable energy, education, and poverty in Morocco and Tunisia

Qamruzzaman

Karim

Kor

2023

Environ Sci Pollut Res

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The Effect of Foreign Direct Investment on Poverty Alleviation in East Africa Countries

Cited by 7 publications

References 17 publications

Effect of Foreign Direct Investment and Trade Openness on the Poverty Alleviation in Burundi – Sub African Country: ARDL (Co-integration) Approach

Effect of Foreign Direct Investment and Trade Openness on the Poverty Alleviation in Burundi – Sub African Country: ARDL (Co-integration) Approach

How responsive is the poverty to the foreign direct investment inflows in Nigeria? Evidence from linear and non-linear ARDL

Does environmental degradation matter for poverty? Clarifying the nexus between FDI, environmental degradation, renewable energy, education, and poverty in Morocco and Tunisia

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