Foreign Direct Investment, Economic Freedom and Economic Performance in Sub-Saharan Africa
The controversies that trailed whether direct impact of Foreign Direct Investment (FDI) on growth are conditional on a certain intermediating links or not, has made an inquiry into the likely mediating links in the FDI growth space a recurring subject of discourse.While the importance of insti...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
University of Primorska
2015-03-01
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| Series: | Managing Global Transitions |
| Subjects: | |
| Online Access: | http://www.fm-kp.si/zalozba/ISSN/1581-6311/13_043-057.pdf |
| Summary: | The controversies that trailed whether direct impact of Foreign Direct Investment
(FDI) on growth are conditional on a certain intermediating links
or not, has made an inquiry into the likely mediating links in the FDI growth
space a recurring subject of discourse.While the importance of institution
has prominently featured as playing a vital role on the one hand,
economic freedom (a key institutional component) has consistently been
elected, as a good candidate surrogate on the other hand. It is against this
backdrop this study examines the effect of FDI inflow on economic performance
in the SSA region giving prominence to economic freedom. The
results support the view that economic freedom is germane in influencing
the economic-wide performance in the region but have insignificant
effects on the different sector performances. It is recommended that economic
freedom be given priority in the region and FDI should be attracted
to other sectors other than the primary sector, as it is the case. |
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| ISSN: | 1581-6311 1854-6935 |