Panel Estimation FDI-Growth Relations in Sub-Saharan African Countries

This paper examines the panel estimation of FDI-Growth relations in Sub-Sahara African (SSA) countries for the period 1995-2018. The empirical findings show that none of the three FDI model specified are statistically significant due to non-significant of the coefficient of the FDI probability value...

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Bibliographic Details
Published inJournal of studies in Social Sciences and Humanities Vol. 9; no. 2; pp. 102 - 111
Main Author Ahmed Oluwatobi ADEKUNLE
Format Journal Article
LanguageEnglish
Published International Educational and Social Sciences Association (IESSA) 01.06.2023
Subjects
fdi
growth
panel estimation
pop
ssa
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Summary:This paper examines the panel estimation of FDI-Growth relations in Sub-Sahara African (SSA) countries for the period 1995-2018. The empirical findings show that none of the three FDI model specified are statistically significant due to non-significant of the coefficient of the FDI probability value greater than 5%. NRR has substantial coefficients in the pooled OLS and random effect models while its coefficient in the fixed effect models is negative. Essentially, POP has favourable coefficients in the pooled OLS random effect model. Relying on empirical findings FDI in SSA was not NRR seeking. This implies that while FDI tends to boost growth in SSA, it is not a crucial factor in the continent’s economic emancipation. Hence, to grow the share in global FDI flows, SSA must work to create a favourable condition such as energy efficient economy and programmatic policies to encourage FDI inflow into the region.
ISSN:2413-9270