Impact of Foreign Direct Investment on Total Factor Productivity in Selected African Countries: A Panel Threshold Regression Approach

Domain:

socioeconomic

Record type:

paper

Creator:

Alo

Publisher:

Host:

Abstract: Despite the recent increase in foreign direct investment (FDI), empirical literature examining the economic impact of such capital flows remains relatively limited. This study investigates the effect of FDI inflows on total factor productivity (TFP) using a panel of 30 selected African countries for the period 1996-2019, aiming to provide novel evidence based on threshold analysis. The results indicate that FDI benefits to host countries in Africa are conditional on host countries meeting the minimum human capital, infrastructure, and good governance levels, as below-threshold levels negatively affect the impact of FDI on TFP; however, the above-threshold levels have a positive impact. Based on the empirical findings of this study, it is recommended that African countries prioritize reaching certain minimum levels of human capital, infrastructure, and good governance before implementing pro-FDI policies. Attracting large volumes of FDI before reaching the required threshold level yields negative TFP outcomes. Keywords: Total Factor Productivity, Foreign Direct Investment, Human Capital, Infrastructure, Governance and Threshold Analysis

Visit

doi.org zenodo.org

Licenses

Creative Commons Attribution 4.0 International https://creativecommons.org/licenses/by/4.0/legalcode

FOREIGN DIRECT INVESTMENT, HUMAN CAPITAL AND ECONOMIC GROWTH IN AFRICA: A PANEL THRESHOLD REGRESSION APPROACH

ANALSING THE EFFECT OF COMMUNICATION, ENERGY, AND TRANSPORT INFRASTRUCTURE INVESTMENT ON FOREIGN DIRECT INVESTMENT IN SELECTED SOUTHERN AFRICA DEVELOPMENT COMMUNITY (SADC) COUNTRIES – A PANEL DATA APPROACH

Infrastructure investment is a key driver of economic growth, especially in developing regions like

Determinants of Foreign Direct Investment: A Panel Data Analysis for Sub-Saharan African Countries

The aim of this study is to investigate the determinants of FDI inflows in Sub-Saharan African count

Foreign Direct Investment and Agricultural Growth: Panel Data Evidence on Chinese FDI Inflows in African Countries

This study examined the impact of Chinese foreign direct investment (CFDI) on the annual growth rate

Determinants Of Foreign Direct Investment In African Countries: An Analysis Through Geographically Weighted Regression

Foreign Direct Investment (FDI) is all monetary input from abroad, applied in the domestic productiv

Socio-Economic Impact of Foreign Direct Investment in Developing Countries

The purpose of this chapter is to empirically examine the impact of socio-economic determinate of fo