Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/2627
Title: FOREIGN DIRECT INVESTMENT, ECONOMIC GROWTH AND FINANCIAL SECTOR DEVELOPMENT IN AFRICA
Authors: Acquah, Abraham Mensah
Ibrahim, Muazu
Keywords: Foreign direct investment
Fnancial sector development
Economic growth
GMM
Issue Date: 2019
Publisher: Taylor and Francis Ltd.
Abstract: The overarching aim of this study is to examine the relationship among foreign direct investment (FDI), economic growth and financial sector development relying on annual panel data spanning 1980–2016 from 45 African countries. Results from the two-system generalized method of moments reveal an ambiguous effect of FDI on economic growth although, for most part, higher FDI is associated with higher growth. Thus, the precise effect of FDI on economic growth is conditioned on the model specification. Interestingly, we notice that financial sector dampens the positive effect of FDI on economic growth. This finding holds irrespective of the indicator of financial sector and economic growth although the dampening effect of domestic credit is higher relative to private credit.
URI: http://hdl.handle.net/123456789/2627
ISSN: 2043-0809
Appears in Collections:School of Business and Law

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