Does the quality of institutions reduce the volatility of foreign direct investment in Africa?
Ongo Nkoa, Bruno Emmanuel
Does the quality of institutions reduce the volatility of foreign direct investment in Africa? - 2018.
13
This article analyzes the influence of institutional quality on the volatility of Foreign Direct Investment (FDI) in Africa. With a sample of fifty-three African countries, we look at a dynamic panel data model over the period 1996-2014, using the Generalized Method of Moments system and a double least squares technique. Our results show mainly that the low quality of institutions does not reduce the volatility of FDI inflows. However, an improvement in FDI inflows in Africa – more specifically in the sub regions of Central and Southern Africa – coupled with the implementation of appropriate development policies, would lead to more FDI inflows. JEL Classification: F40, F41, F21, F23
Does the quality of institutions reduce the volatility of foreign direct investment in Africa? - 2018.
13
This article analyzes the influence of institutional quality on the volatility of Foreign Direct Investment (FDI) in Africa. With a sample of fifty-three African countries, we look at a dynamic panel data model over the period 1996-2014, using the Generalized Method of Moments system and a double least squares technique. Our results show mainly that the low quality of institutions does not reduce the volatility of FDI inflows. However, an improvement in FDI inflows in Africa – more specifically in the sub regions of Central and Southern Africa – coupled with the implementation of appropriate development policies, would lead to more FDI inflows. JEL Classification: F40, F41, F21, F23
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