Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/2630
Title: NETWORKING FOR FOREIGN DIRECT INVESTMENT IN AFRICA: HOW IMPORTANT ARE ICT ENVIRONMENT AND FINANCIAL SECTOR DEVELOPMENT?
Authors: Muazu, Ibrahim
Adam, Ibrahim Osman
Sare, Yakubu Awudu
Keywords: FDI
ICT
Financial Development GMM
Africa
Issue Date: 2019
Publisher: Center for Economic Integration, Sejong Institution, Sejong University
Series/Report no.: Vol.34;Issue 2
Abstract: Studies on the drivers of Foreign Direct Investment (FDI) in Africa have not rigorously examined whether recent advances in the continent’s Information, Communication and Technology (ICT) infrastructure and financial development have any role in attracting foreign capital. This study re-examines the determinants of FDI inflows, paying special attention to the ICT and financial sector environments. By relying on a panel dataset covering 46 countries in sub-Saharan Africa over the period 1980~2016, using the generalized method of moments (GMM) method, our study shows that well–developed ICT infrastructure robustly spurs FDI regardless of the measure of ICT. On the other hand, the impact of domestic financial development on FDI is conditioned on the proxy of finance. Specifically, while domestic (private) credit to GDP inhibits (promotes) foreign capital inflows, higher levels of ICT in the environment dampen the deleterious effect of finance on FDI. We document the threshold levels of ICT necessary to exert such dampening effects.
URI: http://hdl.handle.net/123456789/2630
ISSN: 1976-5525
Appears in Collections:School of Business and Law

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