Can we explain fragilities in Africa through foreign direct investment?
Type de matériel :
26
This article analyzes the effects of foreign direct investment (FDI) on the fragilities observed in Africa. Five dimensions of fragility are considered: economic, political, social, security, and environmental. Based on a sample of 51 countries, we estimate a panel data model using the method of system generalized method of moments, the robustness of which is tested by ordinary least squares over the period 1995 – 2016. We obtain two main results: (i) FDI increases overall fragility in Africa; (ii) FDI increases economic, political, social, security, and environmental fragility. Strengthening the regulation on FDI by setting up a traceability system would be significant in supporting household consumption, private investment, and transactional activity.
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