EconPapers    
Economics at your fingertips  
 

Influence of Foreign Direct Investment on Exchange Rate and Domestic Investment in Pre- and Post- IFRS Adoption Periods of Selected SubSaharan African Countries (1999-2015)

James Ike Ugwu () and Sergius Nwannebuike Udeh ()

International Journal of Academic Research in Accounting, Finance and Management Sciences, 2018, vol. 8, issue 3, 1-16

Abstract: The study examined the influence of Foreign Direct Investment (FDI) on Exchange Rate (EI) and Domestic Investment (DI) in pre- and post-IFRS adoption periods of selected Sub Saharan African countries (Nigeria, Ghana and South Africa). Ex-post facto research design was adopted for the study. Secondary data were collected and analyzed using dummy Variable Regression technique. Findings revealed negative but insignificant influence of FDI on exchange rates of Nigeria and Ghana but South Africa was positive. FDI was also found to have had positive but insignificant effect on DI of Nigeria, Ghana and South Africa. However, there were no significant differences in the influence of FDI on the variables in pre- and post- IFRS adoption periods. The research recommends, amongst others, that government of these countries should ensure FDI inflows in areas where they do not have existing industries to avoid crowding influence of FDI. This could be in areas like value chain agro-allied industries. The study concludes that adoption of IFRS alone is not sufficient to attract significant FDI inflow to a nation.

Keywords: Foreign Direct Investment; exchange rate; domestic Investment; International Financial Reporting Standards; Sub Saharan African Countries (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://hrmars.com/hrmars_papers/Influence_of_Forei ... in_Pre-_and_Post.pdf (application/pdf)
http://hrmars.com/hrmars_papers/Influence_of_Forei ... in_Pre-_and_Post.pdf (text/html)

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:hur:ijaraf:v:8:y:2018:i:3:p:1-16

Access Statistics for this article

More articles in International Journal of Academic Research in Accounting, Finance and Management Sciences from Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences
Bibliographic data for series maintained by Hassan Danial Aslam ().

 
Page updated 2018-11-10
Handle: RePEc:hur:ijaraf:v:8:y:2018:i:3:p:1-16