EconPapers    
Economics at your fingertips  
 

How effective are fiscal incentives to attract FDI to Sub-Saharan Africa?

Emmanuel Cleeve ()
Additional contact information
Emmanuel Cleeve: Manchester Metropolitan University, U.K.

Journal of Developing Areas, 2008, vol. 42, issue 1, 135-153

Abstract: Given the role of foreign direct investment in the development process, one of the most important challenges facing Africa is how to attract foreign direct investment. A number of attempts have been made, but most have been unsuccessful because of various factors that work against the business environment for foreign investment. This paper analyses the impact of fiscal incentives, the most popular instrument, for attracting foreign investment to Sub-Saharan Africa. It uses cross-sectional time series data on 16 Sub-Saharan African countries, and an econometric model of three proxies of fiscal incentive, after controlling for traditional and other policy variables. The results show that traditional variables and government policies to attract foreign investment to Africa are important. Of the fiscal incentives, tax holidays seem to be the most significant. What could also be important are political and macroeconomic stability at the national and regional levels, property rights protection and other investment-supporting regulations and improvements in infrastructure and service support systems.

Keywords: Foreign Direct Investment; Fiscal incentives; Sub-Saharan Africa (search for similar items in EconPapers)
JEL-codes: F21 F23 C4 O1 (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations View citations in EconPapers (12) Track citations by RSS feed

Downloads: (external link)
http://muse.jhu.edu/journals/journal_of_developing_areas/v042/42.1.cleeve.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:jda:journl:vol.42:year:2008:issue1:pp:135-153

Access Statistics for this article

More articles in Journal of Developing Areas from Tennessee State University, College of Business Contact information at EDIRC.
Series data maintained by Abu N.M. Wahid ().

 
Page updated 2017-09-29
Handle: RePEc:jda:journl:vol.42:year:2008:issue1:pp:135-153