Trade liberalization policies and foreign direct investment inflows in Africa: Evidence from new measures of trade liberalization

Nathaniel Kwapong Obuobi, John Gartchie Gatsi, Michael Owusu Appiah, Seyram Kawor, Emmanuel Kwakye Amoah and Mac Junior Abeka

The Journal of International Trade & Economic Development, 2022, vol. 31, issue 3, 394-409

Abstract: This paper examines the role that trade liberalisation policies play in attracting FDI flows to African economies from 2000 to 2017. This study contributes to the extant literature on the relevance of trade liberalisation policies in developing economies and in particular, African Countries. By employing new measures for trade liberalisation policies, the study estimated a System Generalized Method of Moment model to examine the relationship between trade liberalisation policies and FDI inflows to Africa. The findings suggest that the institutionalisation of policies to enhance trade liberalisation would be germane in attracting higher levels of FDI flows to African economies.

Date: 2022
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DOI: 10.1080/09638199.2021.1983009

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