The Dynamics of Foreign Direct Investment in Sub-Saharan Africa : Challenges and Opportunities
Keywords:
Economic Development, Challenges, Opportunities, Policy Recommendations, Technology TransferAbstract
Foreign Direct Investment (FDI) is a key driver of economic growth in many developing regions, but its effectiveness in Sub-Saharan Africa has been mixed. This paper examines the dynamics of FDI in the region, exploring both the challenges and opportunities it presents for economic development. The research identifies factors such as political instability, infrastructure deficits, and regulatory barriers that hinder FDI inflows, as well as the potential benefits such as technology transfer, employment, and market expansion. It concludes with policy recommendations aimed at improving the FDI climate in Sub-Saharan Africa.
References
Akinboade, O. A., & Kinfack, E. A. (2012). Foreign Direct Investment and Economic Growth in Sub-Saharan Africa: The Role of Institutional Quality. Journal of African Business, 13(2), 133-151.
Asiedu, E. (2002). On the Determinants of Foreign Direct Investment to Developing Countries: Is Africa Different? World Development, 30(1), 107-119.
Crespo Cuaresma, J., & Mahringer, H. (2006). Foreign Direct Investment in Sub-Saharan Africa: A Comparison of Regional Dynamics. African Development Review, 18(1), 68-88.
Dunning, J. H., & Lundan, S. M. (2008). Multinational Enterprises and the Global Economy. Edward Elgar Publishing.
Fayissa, B., & Nsiah, C. (2013). Foreign Direct Investment and Economic Growth of Sub-Saharan Africa: A Panel Data Analysis. Journal of Economic Development, 38(2), 53-77.
Girma, S., & Görg, H. (2007). The Impact of Foreign Direct Investment on Domestic Firms: A Survey of the Literature. The World Economy, 30(11), 1635-1654.
Hausmann, R., & Klinger, B. (2007). The Structure of the Product Space and the Evolution of Comparative Advantage. CID Working Paper No. 146.
Hines Jr, J. R. (1995). Forbidden Payment: Foreign Bribery and American Business After 1977. Journal of Economics & Management Strategy, 4(4), 1-36.
Irz, X., & Roe, T. L. (2010). Foreign Direct Investment and Growth in Sub-Saharan Africa. Review of Development Economics, 14(4), 611-624.
Kojima, K. (2000). The Role of Foreign Direct Investment in Economic Development of Sub-Saharan Africa: Theoretical and Empirical Issues. Journal of International Development, 12(2), 239-257.
Levy, D., & Oh, J. H. (2015). Foreign Direct Investment and Institutional Quality in Africa: An Analysis of Determinants and Implications for Growth. Journal of African Economics, 24(2), 237-261.
Nunnenkamp, P., & Spatz, J. (2004). What Determines the Location of FDI in Sub-Saharan Africa? The World Economy, 27(1), 53-73.
Odedokun, M. O., & Round, J. I. (2005). Foreign Direct Investment and Economic Growth in Africa: A Re-examination of the Role of Sectoral Composition. African Development Review, 17(2), 228-252.
Seck, M., & Sarr, M. (2018). The Impact of Foreign Direct Investment on Economic Growth in Sub-Saharan Africa: A Meta-Analysis. International Journal of Economics and Finance, 10(4), 11-25.
Zhuang, J., & Vashakmadze, E. (2019). The Role of Foreign Direct Investment in Sub-Saharan Africa's Economic Transformation: Challenges and Policy Implications. Asian Development Review, 36(1), 103-125.