Foreign Direct Investment, Sectoral Effects and Economic Growth in Africa

Eric Evans Osei Opoku, Muazu Ibrahim, Yakubu Awudu Sare

Research output: Journal PublicationArticlepeer-review

18 Citations (Scopus)

Abstract

Earlier studies on the impact of Foreign Direct Investment (FDI) on economic growth have not been instructive largely on their failure to examine the sectoral transmission channels through which FDI affects growth. We re-examine the impact of FDI on economic growth in Africa using the system generalized method of moments. The results reveal that, while FDI positively and unconditionally spurs economic growth, its growth-enhancing effect is imaginary when the conditional sectoral effects are introduced. On the channels of manifestation, we notice that the pass-through impact of FDI is only significant for the agricultural and service sectors.

Original languageEnglish
Pages (from-to)473-492
Number of pages20
JournalInternational Economic Journal
Volume33
Issue number3
DOIs
Publication statusPublished - 3 Jul 2019
Externally publishedYes

Keywords

  • Africa
  • economic growth
  • FDI
  • generalized method of moments
  • sectoral value additions

ASJC Scopus subject areas

  • Economics, Econometrics and Finance (all)

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