The Effect of Foreign Direct Investment and Trade Openness on Economic Growth: Evidence from Five African Countries
AGRIS On-line Papers in Economics and Informatics
; 15(1):35-46, 2023.
Article
in English
| ProQuest Central | ID: covidwho-2293367
ABSTRACT
Through some empirical studies, the flow of FDI and trade openness have proven to support economic growth in developing countries. This paper examines the significance of FDI and trade openness in five African countries (Ghana, Morocco, Kenya, Uganda, and Zambia). The study employed the panel data analysis method using data from the World Bank for the period 1994-2019 for the five selected countries. The result from the Random effect model indicated that FDI positively supports growth, whereas trade openness harms economic growth in these countries. The outcome further revealed that Uganda enjoys more significance than the other countries using the countries' dummies through the pooled model estimation. We recommend that various governments focus more on exports, reduce imports, attract more FDI through incentives, and create a regulatory environment that is friendly to FDI.
Business And Economics; Incentives; Dummies; Foreign investment; Economic growth; International trade; Data analysis; Developing countries--LDCs; Empirical analysis; COVID-19; Trade policy; Exports; Trade; Imports; Tariffs; Gross Domestic Product--GDP; Coronaviruses; Economic development; United States--US; Africa; Uganda; 92812:International Affairs
Full text:
Available
Collection:
Databases of international organizations
Database:
ProQuest Central
Type of study:
Experimental Studies
Language:
English
Journal:
AGRIS On-line Papers in Economics and Informatics
Year:
2023
Document Type:
Article
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