Determinants of foreign direct investment in Africa: An analysis of the impact of financial development
Bruno Emmanuel Ongo Nkoa ()
Additional contact information
Bruno Emmanuel Ongo Nkoa: University of Buea
Economics Bulletin, 2018, vol. 38, issue 1, 221-233
This paper investigates the impact of financial development on Foreign Direct Investment (FDI) in 52 African countries under the OLI Dummy's paradigm from 1995 to 2015. The sample is made up of 35 countries without financial market and 17 countries with a financial market. The empirical methodology is based on the Generalized Method of Moments (GMM). Our empirical results show that, money and quasi money, banking credit to private sector and interest rate liberalisation play a positive role on FDI in countries without financial market. Money and quasi money, market capitalisation and financial market value traded positively influence FDI in countries with financial market. The study suggests, with regard to the low level of our estimated coefficients, that African countries need to reinforce their financial reforms.
Keywords: Foreign direct investment; financial development; banking system; stock market; Africa; generalized method of moments (search for similar items in EconPapers)
JEL-codes: F2 G2 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-17-00647
Access Statistics for this article
More articles in Economics Bulletin from AccessEcon
Series data maintained by John P. Conley ().