Foreign investment and growth: A case of selected African economies


Objective: The purpose of the study is to indicate how foreign investment impact on economic growth in some selected African economies.

Research Design & Methods: The study employed the Panel ARDL (PMG) technique to estimate the impact of foreign investment proxy as FDI net inflows on Growth measured as GDP per capita.

Findings: The results of Panel ARDL indicate that foreign investment has a positive impact on economic growth as well as a positive sign of trade openness, inflation, and labor. The study stresses that for increasing economic growth there is a need to seek more foreign investments, increase trade openness and inflation at the same time improve upon employment conditions in selected African developing countries.

Contribution & Value Added: The novelty of this research is in presenting and emphasizing the significance of FDI in some selected African countries on economic growth.


foreign investment; emerging economies; economic growth; ardl; panel data

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Published : 2019-12-28

AppiahM., LiF., FrowneD. I., & DonkorD. T. (2019). Foreign investment and growth: A case of selected African economies. International Entrepreneurship Review, 5(3), 7-18.

Michael Appiah
School of Finance & Economics, Jiangsu University  China
PhD Student at the School of Finance & Economics, Jiangsu University, China with research interests
in Economic Growth & Development, Sustainable Growth & Management etc. He is also the
Director of Dorstell Consult Ltd, Ghana.
Fanglin Li 
School of Finance & Economics, Jiangsu University  China
Associate Professor and a Doctoral Supervisor at the School of Finance & Economics, Jiangsu University, China with research interests in Environmental and economic Statistics, Sustainable development assessment and Environment policy and ecological management.
Doreen Idan Frowne 
Faculty of Business, Koforidua Technical University  Ghana
Student at the Koforidua Technical University in the Faculty of Business and Management Studies. Miss Idan Frowne has been an industrial player with 3 years of working experience as both a management assistant and an administrative secretary.
Daniel Tetteh Donkor 
School of Business, University of Cape Coast  Ghana
Bachelor of Commerce (Bcom) from the University of Cape Coast, Ghana. He is currently an Accountant with seven (7) years’ experience in accounting & finance in the Educational sector in Ghana.

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