Replication Data and Code for: "Absorptive Capacity and the Growth Effects of Foreign Direct Investment: Threshold Evidence from Sub-Saharan Africa"

This repository contains the replication dataset and code for the paper "Absorptive Capacity and the Growth Effects of Foreign Direct Investment: Threshold Evidence from Sub-Saharan Africa," submitted to Emerging Markets Finance and Trade. The paper tests whether FDI's own growth effect in Sub-Saharan Africa is threshold-dependent, using Hansen's (1999) panel threshold regression across 47 SSA countries (1970–2023), with FDI specified as both the threshold variable and the regime-dependent regressor. The analysis identifies a threshold at 0.82% of GDP, tests it via bootstrap inference (500 replications), checks robustness under 3- and 5-year temporal aggregation, and examines heterogeneity across Anglophone and Francophone (CFA franc zone) colonial-monetary subsamples. Data sources: World Development Indicators (WDI), World Bank; Worldwide Governance Indicators (WGI), World Bank; UNCTAD. Contents: [panel dataset, do-file(s)/code, variable dictionary — adjust to match what you're actually depositing] Citation: Pele Ernest Botsyoe (2026). Replication Data and Code for: Absorptive Capacity and the Growth Effects of Foreign Direct Investment: Threshold Evidence from Sub-Saharan Africa [Data set]. Zenodo.