JOURNAL ARTICLE

Is foreign direct investment globalization‐induced or a myth? A tale of Africa.

  • Published In: International Journal of Finance & Economics, 2023, v. 28, n. 3. P. 2651 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Aluko, Olufemi Adewale; Chen, George S.; Opoku, Eric Evans Osei 3 of 3

Abstract

Foreign direct investment (FDI) provides many African countries an important source of capital inflow. Despite notable improvements in these capital‐scarce countries' economic, political and social conditions, foreign investors have not considered them viable host locations. Since FDI brings enormous spillovers to its host, some countries have recently institutionalized globalization as the catalyst for reversing the trend. Against this backdrop, we examine the FDI‐globalization nexus across 47 African countries for the 1996–2016 period. Using the augmented mean group estimator, the results suggest that FDI in Africa is indeed globalization‐induced. Moreover, we find this positive nexus to be driven by the economic dimension of globalization. Overall, we demonstrate the potential of globalization in stimulating an FDI boom in Africa. [ABSTRACT FROM AUTHOR]

Additional Information

  • Source:International Journal of Finance & Economics. 2023/07, Vol. 28, Issue 3, p2651
  • Document Type:Article
  • Subject Area:Business and Management
  • Publication Date:2023
  • ISSN:1076-9307
  • DOI:10.1002/ijfe.2555
  • Accession Number:164722742
  • Copyright Statement:Copyright of International Journal of Finance & Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

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