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The purpose of this study is to examine the threshold effect of inflation on the foreign direct investment (FDI) – economic growth nexus in sub-Saharan Africa using panel samples of countries that have adopted an inflation-targeting regime. The study sourced data from the World Bank’s World Development Indicators over a period of 1982–2020 and adopted the fixedeffect panel threshold model approach for its analysis. The findings reveal two separate thresholds of inflation in the FDI – growth nexus. The growth-enhancing effect of FDI is largely realized when inflation is below the optimal threshold level of 7.26%. Beyond the second threshold level of 16.49%, the beneficial effect of FDI on growth is seen to diminish in terms of effectsize. This study provides new insights into the growth effect of FDI and the role of inflation levels in this nexus. The thresholds of inflation and the attendant size-effect of FDI on growth can be benchmarks for Africa and other developing and emerging economies in assessing their situations. As African monetary authorities choose which inflation targets to set for their monetary policies, the findings raise significant implications for them. [ABSTRACT FROM AUTHOR]

The main objective of this study is to empirically investigate the impact of foreign direct investment on economic growth of Ethiopia by using a time series data for the period 1992–2019. Other explanatory variables like trade openness, human capital, national saving and gross capital formation were incorporated in the model. For the purpose of undertaking the study, Autoregressive Distributed Lag (ARDL) econometric model was employed. Moreover, a Toda-Yamamoto Causality test was performed to identify the direction of the causality between economic growth and foreign direct investment. Findings from the study show that, both in the short run and long run, foreign direct investment has a positive and significant impact on economic growth. As an outcome of Toda-Yamamoto Causality test shows, there is a unidirectional causality running from economic growth to foreign direct investment. On the basis of the findings, recommendations are made for the government authorities to expand infrastructural facilities for enabling a free movement of the investors to the remote and marginalized areas to further expand investment activities that result in higher economic growth. [ABSTRACT FROM AUTHOR]

This research aims to identify the impact of agriculture, forest and fishing value-added on international business, capital flow, and economic growth for India from 2000 to 2022, by examining short-term and long-term equilibrium using the Auto Regressive Distributive lag (ARDL) approach. Agriculture value added is taken as a dependent variable, and inward Foreign Direct Investment (FDI), stock of net FDI, economic growth and trade openness are taken as independent variables. Results indicate that there exists a long-term and short-term relationship between agriculture value added, economic growth and trade openness. Economic growth and trade openness have a statistically significant relationship with agricultural value added in the short and long run. Inward FDI and stock of FDI are not significant to agriculture value added. ARDL Bound test results indicate that there is a long-term cointegrating relation among the variables. The error correction term is also strong and significant (−13.96), suggesting resistance to shocks. Existing literatures coverage on agriculture and international business is scarce in the Indian context, and this research will be significant in that line. The results of this study resonate with the findings of a few studies conducted in other geographical areas, indicating the fact that the receptivity and absorptive capacity prevailing in an economy play a dominant role in receiving maximum benefits from inward capital flow leading to economic growth. This research reinstates that agriculture still influences economic growth in India. Openness is essential for creating a conducive atmosphere for economic development. The study also indicates the direction for future research. [ABSTRACT FROM AUTHOR]

This research paper investigates interactions of human capital, capital goods import and economic growth with a panel of 13 West African countries comprises of 7 low income and 6 low-middle income countries over the period of 1980–2018. The study adopts the Panel Auto-Regressive Distributed Lag (ARDL) cointegration techniques to establish a short and long-run relationship existing among the variables. Panel ARDL (Fixed effect) result revealed that the returns to equipment investment are moderately high on the average. Findings do not support the hypothesis that human capital makes production inputs more effective and helps countries gain from equipment investment and other imported investment for all the countries. This is due to inadequate knowhow and skill arising from the low levels of human capital in these countries. Determining the threshold of human capital development at which countries benefit from equipment investment, findings indicates that countries of the low-middle Income that exhibit a comparatively higher human capital (1.45 on the average) benefited more from imported capital stock and other importations than countries of the low income with very low human capital (1.27 on the average). Thus, we conclude that investment in human capital, innovation, and knowledge are significant contributors to economic growth and should be the priority of developing economies. [ABSTRACT FROM AUTHOR]

This paper investigates the impact of mining foreign direct investment on economic growth in Ghana using quarterly time series data from 1996–2015. The study employs the Autoregressive Distributed Lag bounds testing approach to cointegration and the error correction model to investigate the existence of a long-run and short-run equilibrium relationship between foreign direct investment into the mining sector and economic growth. The study established that foreign direct investment into the mining sector hurts economic growth in Ghana in the long run but a positive in the short run. The study also finds that private sector credit, capital stock, government spending, and labour participation rate have a statistically significant positive relationship with economic growth in the long run. Trade openness exhibited a statistically significant negative long-run relationship with economic growth, while inflation had a positive but insignificant impact on economic growth for the study period. The study recommends that government should encourage research and development in the mining sector and align mining and other environmental policies to ensure sustainable growth. It is further recommended that government tactfully provide investment incentives to ensure the development of other sectors to avoid the Dutch disease. [ABSTRACT FROM AUTHOR]

International remittances remained one major source of international financial resources in the world. Yet very limited empirical studies exist on the impact of these remittances on economic growth, more especially in Ghana. To bridge this void in literature, the study analyzes the impact of remittances on GDP growth in Ghana from 1990 to 2020. The ARDL estimation technique was used to test the long-run association between the selected variables. The results showed that GDP growth rate has a long-run relationship with remittance inflows, foreign direct investment, unemployment rate, inflation, trade, population growth rate and official development assistance. Lastly, the mediating effect of unemployment on remittance inflows negatively affects GDP growth rate in both runs. It is therefore recommended that to ensure sustained GDP growth rate in Ghana, government should consider tapping into the contribution of remittances by ensuring reliable transfer means and cutting down the cost of transfer. [ABSTRACT FROM AUTHOR]

The purpose of this study is to analyze the determinant of economic growth in the region of East African countries from 2002 to 2018. In order to investigate empirically the key determinants of economic growth in East African countries, this study used a dynamic panel model. To improve efficiency, Generalized Moments Method (GMM) estimators are used. Based on panel data from the East African countries during the 2002–2018 period, this study, therefore, estimated the determinants of economic growth in the region. The result suggests that government expense, government revenue, volume of imports and exports of goods and services significantly contribute to the economic growth of the countries. However, the consumer price index, current account balance, gross government debt, and foreign direct investment lead to negative economic growth. The paper has three policy implications; first, promoting open trade and ensuring peace and stability in the region is a paramount policy to enhance the economic growth of the region. East African Countries should move forward in creating stability regionally and internally within the countries. Second, countries in East Africa are recommended to strengthen and sustain their policies on government expenses, government revenue and revise their policies on government debt, inflation and current account balance. Major reforms are required in foreign direct investment and general government debt within the region. Third, to address obstacles in trade, climate change and the tax collection system, political and economic integration is fundamental to the region and to making the region competitive in the international trade arena. [ABSTRACT FROM AUTHOR]

The present study aims at investigating the nexus between unemployment and remittances in Ghana, with a focus on the gender perspective. Using time-series data spanning from 1990 to 2021, the ARDL model is estimated. According to the findings, remittances, inflation, FDI, exports of goods and services, and gross capital formation all have a long-run association with the unemployment rate. Remittances positively correlate with unemployment in the long run. All else being equal, remittances in Ghana tend to also increase female unemployment in the long run. In the short run, while the contemporaneous coefficient is negative, the lagged remittance positively correlates with the unemployment rate in Ghana. The lagged remittance further positively correlates with female and male unemployment in the short run. Finally, we also found a mediating effect of GDP on remittances in reducing the unemployment rate in Ghana. The study therefore recommends that, for remittances to reduce unemployment in the short run, policymakers ought to incentivize deposits of remittances in Ghanaian banks using attractive interest rates. As a result, this might encourage savings, investment, and economic growth, which would eventually result in a decrease in the unemployment rate in the long run. [ABSTRACT FROM AUTHOR]

This paper analyzes the contribution of foreign direct investment (FDI) to economic growth in Côte d'Ivoire, for the period 1980–2019. We use the World Development Indicators (World Bank) database. The Autoregressive Distributed Lag (ARDL) cointegration approach results show that, in the short and long-run, FDI negatively impacts economic growth in Côte d'Ivoire. We conjecture that these results are due to the predominance of extractive FDI in Côte d'Ivoire. Indeed, the extractive sector is weakly linked to the national economy and is subject to practices of fraud and corruption. Our results also show the importance of education (human capital) in the country's economic growth. All of these findings suggest the need for selective FDI attraction policies, the integration of the enclave extractive sector into the national economy and the strengthening of the education system for a more efficient human capital capable of absorbing and using new knowledge and high technologies transferred by FDI. [ABSTRACT FROM AUTHOR]

The current study investigates the impact of foreign direct investment on the growth of Namibia's economy from 1990 to 2020 using the ARDL cointegration method. The results reveal that FDI, the interactive variable of FDI and trade openness, and other macroeconomic variables such as domestic investment, government consumption expenditure, human capital, a proxy for economic stability, and return on investment are responsible for Namibia's economic growth. The article confirms the FDI-led growth and the Bhagwati hypotheses for Namibia as shown by the FDI and the interactive variable of FDI and trade openness, respectively. To reap the full benefits of FDI on economic growth in Namibia, the government must focus on improving physical infrastructure and the quality of human resources. It should also facilitate the development of an entrepreneurship culture, create a stable macroeconomic environment, and improve conditions for productive investments to accelerate economic growth and development. [ABSTRACT FROM AUTHOR]

This empirical study examines the role of information and communication technology (ICT) in the relationship between FDI and environmental quality for six leading African economies from 1970 to 2020. The second-generation tests are used to determine the stationarity level of the variables. Furthermore, the Westerlund panel cointegration test confirms cointegration among the variables. For long-run association, CS-ARDL, which resolved the consequences of heterogeneity and cross-sectional dependency is used. The results of the study reveal that ICT, FDI, economic growth, and financial development degrade environmental quality. The interacting effect of ICT and FDI (ICT*FDI) leads to escalation of CO2 emissions thereby deteriorating the quality of the environment. The study recommends that African countries should promote FDI to support the inflow of green technologies to enhance environmental quality. The implementation of environmentally sustainable technology would help improve the quality of the environment, increase sustainability in the long term and conserve resources for future generation. [ABSTRACT FROM AUTHOR]

This study examines causal relationship between foreign direct investment (FDI) inflows and economic growth in Tanzania during 1990–2020. As financial development and trade were not incorporated in extant studies, we included them as intermediate variables because of their intermediation role in this study. FDI inflow is considered an important economic growth catalyst in developing economies. Neoclassical growth theories claim that it enhances economic growth by augmenting capital stock and technology. According to the neoclassical theories, FDI does not enhance the long-run growth rate but instead is related to the level of output. However, empirical evidence is rather mixed, with some supporting the neoclassical theoretical views on economic growth, while others opposing them. We employ the autoregressive distributed lag model and Granger causality tests to analyze the relationship. The results indicate that there exists a long-run relationship among the variables under considerations in Tanzania. Furthermore, the finding reveals positive and statistically significant unidirectional causality running from FDI inflow to economic growth in Tanzania in the long and short run. Hence, we conclude that Tanzania should emphasize FDI-led growth policies to enhance economic growth to realize the desired economic objectives. [ABSTRACT FROM AUTHOR]

The main objective of this quantitative study is to ascertain the effect of foreign direct investment, real exchange rate, remittances, and import on economic growth in Ghana. Secondary data on gross domestic product, foreign direct investment, real exchange rate, remittances, import, and gross capital formation from 1980 to 2018 were analyzed. The study employed Autoregressive Distributed Lag for the econometrics analysis. The study found that foreign direct investment, real exchange rate, remittances, import, and gross capital formation cointegrates with economic growth. The main findings are that foreign direct investment, real exchange rate, import, and remittances matter from growth perspective. Remittances have a positive and significant effect on economic growth in Ghana both for the short run and the long run. The study also revealed that foreign direct investment, real exchange rate, and imports have a negative and significant effect on the growth process of Ghana's economy for both the short run and the long run. The study recommends that the Ministry of Finance, Ghana, financial analysts and other policy makers should undertake steps to reduce imports and attract more remittances inflows to attain long-run economic growth. In addition, the economy must concentrate on viable exchange rate policies such as undervaluation of currency to stimulate sustainable economic growth. [ABSTRACT FROM AUTHOR]

Prior studies on the relationship between FDI and growth have generally concentrated on mean effects, or average growth benefits. It seems improbable that the majority of sub-Saharan economies will have similar "average" economic growth, hence the emphasis on mean effects in particular falls short. All other drivers can be seen to have an impact based on the uneven growth rates of these economies. The current study brings new evidence about the asymmetric relationship between foreign direct investment (FDI) and economic growth amidst financial sector development (FSD) and corruption covering a sample period of 2002 to 2020 for 48 sub-Saharan economies. For this reason, the instrumental variables panel quantile regression technique is employed to achieve the purpose of the study. The study finds that FDI inflows have a significant positive relationship with economic growth for economies with low growth (less than 50% quantile) but negative at high growth levels (at quantiles 50% and beyond). Also, control of corruption significantly interacts negatively with FDI and GDP per capita irrespective of the GDP levels, whereas FSD significantly positively interacts with FDI to contribute to economic growth at various growth levels. Findings from the study imply that FSD promotes economic growth in sub-Saharan Africa at diverse growth levels. On the other hand, the interacting effect of control of corruption is inimical to FDI-growth nexus at all growth levels. It is pertinent that efforts are made by financial policymakers in sub-Saharan Africa to improve the local financial sector conditions to recuperate the economic advances from FDI. [ABSTRACT FROM AUTHOR]

Continuous improvement of the business environment is important for countries seeking to benefit from increased trade and investment through regional integration. Creating an enabling environment for businesses to thrive and expand has become a new concept in international development organizations, and a good business climate allows good ideas to take root, which leads to the creation of jobs and better lives for host countries. The main objective of this study was to investigate the impact of business regulations on FDI inflow and economic growth in East Africa region using data collected from the World Bank spanning from 2010–2019. The study finds that dealing with construction, enforcing contracts, getting credit, getting electricity, paying tax and protecting minority investors have a significant impact on FDI inflow in the region. While enforcing contracts, getting credit, protecting minority investors, resolving insolvency, starting a business and trade across borders have a significant impact on economic growth in the region. Moreover, each additional reform during 2010–2019 is associated, on average, with a 3.09% increase in FDI inflows and 2.24% increase in GDP in East African countries. The findings of this study will help policy makers in the region to establish a strong legal framework of business regulations to attract FDI inflow into their economies, to adjust their ease of doing business procedures to attract FDI to their economies and to promote regional economic growth. This will also assist investors in monitoring these key indicators to facilitate investment decisions in foreign countries. [ABSTRACT FROM AUTHOR]

This study applies the method of the fully modified ordinary least squares (FMOLS) method and the vector error correction model (VECM) to explore whether institutional quality (IQ) and foreign direct investment (FDI) promoted economic growth (EG) and environmental quality (EQ) in oil-producing and non-oil-producing African countries from 1999 to 2017. The FMOLS findings demonstrate that IQ significantly promoted EG and improved EQ in the non-oil-producing countries, however it only improved EQ and showed no significant impact on EG in oil-producing countries. FDI significantly promoted EG to a higher extent in oil-producing countries than in non-oil-producing countries, but it presented no significant impact on EQ in both groups. The VECM results reveal that (i) two-way causation among IQ and EG, IQ and EQ, FDI and EG, and FDI and EQ was occurred in both groups, in the long-run. (ii) two-way causation among FDI and EQ and one-way causation from FDI to EG was observed in non-oil-producing countries in the short-run. Moreover, two-way causation among IQ and EG, and one-way causation from IQ to EQ were observed in non-oil-producing countries. To realize the sustainable development of economy and environment, a series of policy suggestions have been discussed. [ABSTRACT FROM AUTHOR]

The relationship between foreign direct investment and economic growth (FDI-EG) has been subject to extensive research. The first document related to FDI-EG research in Web of Science was published in 1992 so that the research time is close to 30 years. This article aims to make a bibliometric study to measure the FDI-EG research from different points of view. 1,075 documents with respect to FDI-EG research were collected, and a strong bibliometric analysis was carried out by Bibliometrix software and review of approaches. The Bibliometrix software has revealed the leading researchers, conceptual structure, and thematic evolution of the FDI-EG research. At the same time, reviewing the literature helps to make content analysis, the most influential document analysis, co-authorship analysis, and citation and co-citation analysis. Amongst the findings, C. Chen, Journal of International Economics, and the USA are the most influential researcher, journal, and country, respectively. The FDI-EG research are focussed on the technology and firm performance, research modelling, and theoretical inquiry. More discussions are made in terms of current research status, avenues for future research, advantages and drawbacks of the methods. This article helps in understanding the evolution of the FDI-EG research from the perspectives of the bibliometric and review. [ABSTRACT FROM AUTHOR]

The relationship between public sector expenditure and economic growth for several decades past is still relevant today and continues to be a topic of debate among policy-makers and researchers. We examine the impact of government expenditure on economic growth in Ghana using data from 1970 to 2016, employing ARDL econometric estimation technique. The empirical findings indicate that, government expenditure has a positive relationship with economic growth in the short-run. The results further show that, Gross Capital Formation and Foreign Direct Investment show a significant positive relationship with economic growth in both the short-run and long-run. However, population growth reveals a significant negative relationship with economic growth (GDP Growth). We recommend government to increase public expenditure on profitable projects since it promotes economic growth. [ABSTRACT FROM AUTHOR]

This study examines the dynamic interactions among foreign direct investment (FDI), economic growth (GDPG), and real exchange rate (RER) in Ghana using time series data over the period 1996 to 2018, and two econometric models: a trivariate VAR and the ARDL bound test. The results reveal that no long-run relationship exists among the variables. However, a positive causal shock flows from both FDI and RER to GDPG. Also, the response of FDI to the shock in RER is positive. Therefore, it is recommended that the government implements policies that will ensure optimal balance in this nexus since a close and inter-reliant link exists among the variables. [ABSTRACT FROM AUTHOR]

The paper investigated the dynamic and causal relationship among corruption, foreign direct investment, and economic growth simultaneously, a largely overlooked area in empirical studies, using a dataset from Ghana. It is among the few studies that explore the confluence of these variables and therefore contributes to understanding the contextual realities of the impact of FDI inflow, an often-prioritised policy choice, on widely used measures of social coherence and welfare. The study employed a vector autoregressive (VAR) estimation approach to empirically explore the relationships among corruption, foreign direct investment, and economic growth. The findings suggest that there is a reverse causality among corruption, foreign direct investment, and economic growth. This indicates that these variables are complementary rather than contradictory. These findings imply that central government and policymakers should not pursue any of these variables as a policy goal, but rather treat them as complements when modelling or formulating economic policies. This means that policies aimed at promoting foreign direct investment will not jeopardize or compromise the control of corruption and economic growth and vice versa. [ABSTRACT FROM AUTHOR]

The impact of foreign financial inflows on the economic growth of recipient countries is a controversial issue in many empirical studies. The majority of the previous studies use one variable as an indicator of foreign financial inflows; they fail to incorporate many variables. The study fills this gap by using remittance inflows, foreign direct investment, official development assistance, and external debt as an indicator of foreign financial inflows. This study investigates the impact of foreign financial inflows on the economic growth of 31 sub-Saharan African countries over the period 2009 to 2019. The study employed a two-step system GMM due to its practical advantage on the dynamic panel data set. The finding shows that only foreign direct investment has a significant and positive contribution to economic growth. Official development assistance and external debt affect economic growth negatively, and they are statistically significant. Remittance inflow affects economic growth negatively, but it is statistically insignificant. The study suggests that policymakers should work on the way that remittance inflow promotes investment and reduce dependency on official development assistance. In addition, external borrowing should be used for productive purposes. [ABSTRACT FROM AUTHOR]

This study examines the relative effects of the different types of international financial flows on economic performance in Kenya both in the long- and short-runs using the autoregressive distributed lag model (ARDL) bounds approach and data for the period 1970 to 2017. This is against the backdrop of the government of Kenya which has targeted attracting foreign capital inflows as one of the key measures to achieving the economic pillar of the Kenya Vision 2030. The aim is to achieve an economic growth rate of 10 per cent annually and sustaining the same until 2030. After a very rigorous and careful model selection exercise, the results robustly reveal a very strong long-run causality running solely from portfolio equity to economic growth with a positive and significant effect on economic growth. In the short-run, the effect of portfolio equity on economic growth is also very positively strong. In contrast, all the other capital flows have very weak long-run relationship with economic growth with causality running only from economic growth to the capital flows. [ABSTRACT FROM AUTHOR]

The impact of foreign direct investment on the host country's economic growth has been a source of debate in past theoretical and empirical investigations. The PMG/ARDL model, which has a practical advantage in examining the effect of foreign direct investment in the short and long run, has received little attention in prior empirical investigations. This study investigates the effect of foreign direct investment on the economic growth of Sub-Saharan African countries. The study examined panel data from 22 nations in Sub-Saharan Africa from 1988 to 2019. The PMG/ARDL model was used to look at the short- and long-term effects of foreign direct investment on economic growth. The panel unit root test and panel co-integration test were employed to improve the model's estimation. According to the findings, in the long run, foreign direct investment has a favorable and significant effect, but it is statistically insignificant in the short run. The study concludes that foreign direct investment boosts long-term economic growth. As a result, countries in Sub-Saharan Africa should focus on attracting foreign direct investment. [ABSTRACT FROM AUTHOR]

Africa is still struggling to mitigate its electricity insecurity issues. This situation renders foreign direct investment in the renewable electricity industry (FDIREI) and renewable electricity production (REP) to become simultaneously important to Africa. Using a novel dataset of FDIREI, this paper examines the existence and nature of cointegration and causality nexuses among FDIREI, REP, and economic growth (GDP) in 32 African countries over 2003–2019. For methodological robustness purposes; GDP is added. By applying the panel vector autoregression model based-Granger causality test and a static panel data model, which are followed by robustness tests, more informative results are reported. Importantly, we find evidence of the growth hypothesis between REP and GDP, as a unidirectional Granger causality is seen from REP to GDP. Further, the neutrality hypothesis is confirmed among the remaining variables. This left us with the importance of REP in revitalizing African countries' economic growth. All facets of REP thus should be enhanced. [ABSTRACT FROM AUTHOR]

This paper explores the relationship among trade openness, economic growth and poverty level in 40 sub-Saharan Africa countries from 1990 to 2017. Panel Autoregressive Distributed Lag (ARDL) model, Panel Vector Auto-regression (VAR) and the System of Generalised Method of Moments (SYS-GMM) were employed. A robustness test was also applied. The sensitivity analysis was done through the Panel ARDL model. The results revealed that trade openness, foreign direct investment and institutional quality significantly increase economic growth in the long term, while institutional quality reduces economic growth in the short run. Furthermore, trade liberalisation, institutional quality and population growth rate lead to poverty reduction in the long run, while trade openness has adverse effects in the short run. Moreover, poverty does not have a significant response to trade and growth shocks. Poverty presented a positive change but the level was not significant. The Pairwise Dumitrescu Hurlin Panel Causality results highlight feedback effects among trade, economic growth and poverty level in the region. Based on these findings, the study recommends that governments in Africa should reviewed their poverty reduction programmes in order to move towards achieving the sustainable development goals. [ABSTRACT FROM AUTHOR]

This study investigated the direct link between foreign bank entry and economic growth in Sub-Sahara African countries using a dynamic generalized method of moment estimator. It also studied a comparative analysis on banking environment for SSA countries that open and restrict banking industries to foreign ownership using descriptive analysis. The descriptive evidence suggests that SSA countries that allowed foreign bank entry have better banking service access, competition and depth than SSA countries that restrict banking industries to foreign ownership. Econometric estimation result shows a foreign bank asset share has a direct positive effect on economic growth. The findings of this study provide imperative policy implication to SSA countries that did not open their banking sector to foreign investment. They could open the door for foreign bank involvement in the banking industries and reap all the good benefits that SSA countries that open their banking industries to foreign investors are enjoying. [ABSTRACT FROM AUTHOR]

We investigate the asymmetric effect of oil and gas resource rent on economic growth of Ghana for the period 2010 to 2019, dwelling on the hypothesis that natural resources extraction has double-edge effect on economic growth. Using Nonlinear Autoregressive Distributed Lag (NARDL) model as estimation strategy, we find that oil and gas resource rent affect economic growth asymmetrically. Specifically, our NARDL estimates suggest that oil resource rent promotes economic growth significantly, providing empirical evidence in support of the resource blessing hypothesis. However, gas resource rent exerts a significant adverse effect on economic growth, providing empirical evidence to support the resource curse hypothesis. Our findings point to the need for policies that promote the expansion of oil resources firms than gas resource firms in the short run while long term policies should target setting up both oil and gas resource firms in developing countries, especially countries with similar socioeconomic and demographic setting like Ghana. Finally, government and monetary authorities should promote policies that attract foreign direct investment inflow in Ghana while taming inflation and lending rate towards growth enhancing targets. [ABSTRACT FROM AUTHOR]

This study examines the impact of economic growth along with taxes, technology, trade openness and exchange rate on the sustainability of foreign private investment (FPI) in Pakistan. This study uses random effects and generalized least squares estimators and contains data set starting from 1996 to 2017. The results indicate that the Pakistan economy has vastly positive influenced regarding the location and choice of emerging and developed countries' investment in the domestic market. Furthermore, emerging and developed economies investment increases the contribution among domestic firms to the national economy. The results, which are consistent across models, indicate that Pakistan's economy is more likely to receive FPI from emerging and developed economies, but the relative intensity of local government efforts, regardless of economic size. Moreover, an increase in likelihood will generate FPI from developed countries. [ABSTRACT FROM AUTHOR]

In this study, the dynamic Granger-causality between tourism development and economic growth in South Africa was empirically examined during the period 1995-2016. The study was motivated by the limelight that the South African tourism sector has been enjoying in recent years, on the one hand, and the lack of sufficient coverage of tourism-growth nexus studies in many sub-Saharan African countries, on the other hand. The study used two tourism proxies, namely tourist arrivals and tourism revenue, to examine this link. In addition, the study used exchange rate and foreign direct investment as intermittent variables in a multivariate Granger-causality model in order to address the omission-of-variable bias. Using the auto-regressive distributed lag (ARDL)-bounds testing approach, the study found that although the direction of causality between tourism development and economic growth in South Africa is sensitive to the proxy used and the time under consideration, in the main, a feedback relationship tends to predominate in the short run. The study, therefore, recommends that short-term policy efforts be directed at developing the tourism and the real sectors as both sectors have been found to reinforce each other in the short run, irrespective of the tourism proxy used. [ABSTRACT FROM AUTHOR]

This study examines the effects of economic growth and foreign direct investment (FDI) on child health outcomes measured by Infant Mortality Rate (IMR) and Child Mortality Rate Under 5 (CMRU5) with several control variables such as corruption, inequality and HIV among others. It analyzes South Africa's annual time series data for the period 1985–2016. As variables were found with mixed order of integration, Autoregressive Distributed Lag (ARDL) model is applied to determine cointegration and estimate short-run and long-run coefficients. Results indicate that economic growth and FDI have negative significant effects on both indicators of child health outcomes in both the short run and the long run. This implies that both economic growth and FDI contribute towards reducing IMR and CMRU5 in South Africa and thus help improve child health outcomes. Toda and Yamamoto (TY) causality test confirms causal association between these variables. Policy implications are discussed. [ABSTRACT FROM AUTHOR]

As a consequence of globalisation, economic growth and productivity have become more sensitive to developments beyond national frontiers. This paper explores trade (import and export) and foreign direct investment (FDI) as channels of international total factor productivity (TFP) spillovers. FDI and trade are potentially important sources of productivity growth; however, empirical literature is inconclusive as to the nature and extent of spillovers and does not simultaneously cover all three channels. Our main goal is to examine the transmission of TFP spillover effects jointly through trade and FDI channels in 41 countries (members of the EU and OECD) during the period 1995‒2014. We use dynamic panel estimation strategies. The main findings are: 1) Each of the spillover channels of TFP is significant for TFP when studied separately; 2) Joint examination of all channels allows for concluding that the export channel is the dominant one. [ABSTRACT FROM AUTHOR]

This article explores the relationship between informal and formal institutions and how their interactions shape the outcome of locational choices for foreign direct investment (FDI) in China's interior. This is an important but neglected aspect of China's economic development. The focus is on why FDI exists in host locations where the investment environment is poor and less competitive. Evidence from Shaanxi province suggests that the intertwined role played by personal networks and institutional involvement is a crucial part of the explanation. Networks are the key: at the individual/personal level, they are in the form of personal networks, and at the institutional/organization level, they take the form of institutional involvement. Moreover, the relationships among FDI, personal networks, and institutional involvement have a hierarchical structure: the larger the foreign parent firms, the more institutional involvement, while the smaller the foreign parent firms, the more personal networks are involved. [ABSTRACT FROM AUTHOR]