Effects of democracy and natural resources on foreign direct investment in African natural resource-rich countries

Dramane Abdoulaye

International Journal of Sustainable Development, 2023, vol. 26, issue 1, 51-70

Abstract: This article aims to investigate the effects of democracy and natural resources on foreign direct investment (FDI) in African countries rich in natural resources. To this end, an econometric model was estimated using three methods, namely, fixed effects with sample heteroscedasticity correction, the instrumental variables method and the general method of moments, on a panel of 22 countries over the period 2000-2017. On the one hand, the results show that democracy has a positive effect on FDI. On the other hand, the analysis showed that natural resources do not help to attract FDI. Our findings suggest that concrete actions are needed in terms of strengthening and improving governance and democratic institutions to better attract FDI in African countries rich in natural resources.

Keywords: democracy; foreign direct investment; FDI; natural resources; panel data; Africa. (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.inderscience.com/link.php?id=129144 (text/html)
Access to full text is restricted to subscribers.

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:ids:ijsusd:v:26:y:2023:i:1:p:51-70

Access Statistics for this article

More articles in International Journal of Sustainable Development from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().