The foreign aid–foreign direct investment relationship in Africa: The mediating role of institutional quality and financial development

Olufemi Adewale Aluko

Economic Affairs, 2020, vol. 40, issue 1, 77-84

Abstract: The interaction of foreign aid and foreign direct investment is an important issue for developing countries in Africa. I probe into the mediating role of institutional quality and financial development using a panel data set of 47 countries over the period 1996–2016. I find that the effectiveness of foreign aid in attracting foreign direct investment is greater in countries with better institutional quality and sound financial development. The implications for policy are outlined.

Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://doi.org/10.1111/ecaf.12386

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:ecaffa:v:40:y:2020:i:1:p:77-84

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0265-0665

Access Statistics for this article

Economic Affairs is currently edited by Philip Booth

More articles in Economic Affairs from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().