Country Risk Factors: An Empirical Study of FDI Determinants in SSA
Year: 2008
Type: preprint
Abstract: Foreign Direct Investment (FDI) plays an important role in the development of emerging economies and it has recently been considered a force for the integration of countries, particularly developing ones, into the global economy. However FDI flows into Sub-Saharan Africa (SSA) has been dismally low compared to flows into other parts of the world (UNCTAD, 2002). This study examines the effects of country-risk factors – economic, financial and political risks – on FDI flows into SSA countries during 1990-2002. Using rigorous regression analyses, study results indicate low levels of FDI flows into SSA are attributable to a risky business/investment climate. Specifically, the capacity of SSA countries to attract FDI is a function of economic, financial and political risk factors, with political risk exacting the most significant influence in the joint determination of FDI inflows.
Source: SSRN Electronic Journal
Author: Etienne Musonera
Institution: Mercer University
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1580383746