IDEAS home Printed from https://ideas.repec.org/a/ids/ajesde/v1y2012i1p49-66.html
   My bibliography  Save this article

Foreign direct investment in Sub-Saharan Africa

Author

Listed:
  • Ouédraogo Nosseyamba Benjamin

Abstract

This article deals with the domestic and private foreign direct investment in sub-Saharan African countries. The region share of global foreign direct investment inflows is 0.4% in 1990-2000, and 24% in 2004-2005. The most important reasons are linked with the socio-political and structural conditions. The African saving ratio is 18.1%, inflation 7.4% in 2009. This article shows that the macroeconomic reforms affect the foreign direct investment inflows. The result of this study reveals that privatisation process has led to a huge capital investment increase. Fifty-nine points of uncertainty for investors in 2001 is resulting from wars, political and social instability and corruption. This paper suggests some solutions to attract and increase foreign investment. Some reforms are needed to improve governance, reduce corruption, respect for laws, and eliminate socio-political violence. There is also a need for creating efficient infrastructure services.

Suggested Citation

  • Ouédraogo Nosseyamba Benjamin, 2012. "Foreign direct investment in Sub-Saharan Africa," African Journal of Economic and Sustainable Development, Inderscience Enterprises Ltd, vol. 1(1), pages 49-66.
    • Handle: RePEc:ids:ajesde:v:1:y:2012:i:1:p:49-66
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=45753
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Luiz, John Manuel & Charalambous, Harris, 2009. "Factors influencing foreign direct investment of South African financial services firms in Sub-Saharan Africa," International Business Review, Elsevier, vol. 18(3), pages 305-317, June.
    2. David Williams, 2003. "Managing Sovereignty : The World Bank And Development in Sub-Saharan Africa," Mondes en développement, De Boeck Université, vol. 123(3), pages 5-21.
    3. K. Mlambo & T. W. Oshikoya, 2001. "Macroeconomic Factors and Investment in Africa," Journal of African Economies, Centre for the Study of African Economies, vol. 10(suppl_2), pages 12-47.
    4. Stefan Parys & Sebastian James, 2010. "The effectiveness of tax incentives in attracting investment: panel data evidence from the CFA Franc zone," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 17(4), pages 400-429, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hassan O. OZEKHOME, 2022. "Do Regulatory Quality, Government Effectiveness and Rule of Law Matter to Foreign Direct Investment in Nigeria?," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 160-175, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aneta Bobenič Hintošová & František Sudzina & Terézia Barlašová, 2021. "Direct and Indirect Effects of Investment Incentives in Slovakia," JRFM, MDPI, vol. 14(2), pages 1-12, February.
    2. Alexander Klemm & Stefan Parys, 2012. "Empirical evidence on the effects of tax incentives," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 19(3), pages 393-423, June.
    3. Asongu, Simplice & Amavilah, Voxi & Andrés, Antonio R., 2014. "Economic Implications of Business Dynamics for KE-Associated Economic Growth and Inclusive Development in African Countries," MPRA Paper 63793, University Library of Munich, Germany.
    4. Maria O. Kakaulina & Dmitry R. Gorlov, 2022. "Assessment of the Impact of Tax Incentives on Investment Activity in Special Economic Zones of the Russian Federation," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 21(2), pages 282-324.
    5. Sokolovskyi, Dmytro, 2018. "Analysis of dependencies between state tax behavior and macroeconomic indicators," MPRA Paper 86417, University Library of Munich, Germany.
    6. Laudage, Sabine, 2020. "Corporate tax revenue and foreign direct investment: Potential trade-offs and how to address them," IDOS Discussion Papers 17/2020, German Institute of Development and Sustainability (IDOS).
    7. Saleh, Ali Salman & Anh Nguyen, Thi Lan & Vinen, Denis & Safari, Arsalan, 2017. "A new theoretical framework to assess Multinational Corporations’ motivation for Foreign Direct Investment: A case study on Vietnamese service industries," Research in International Business and Finance, Elsevier, vol. 42(C), pages 630-644.
    8. Leonce Ndikumana, 2008. "Can macroeconomic policy stimulate private investment in South Africa? New insights from aggregate and manufacturing sector-level evidence," Journal of International Development, John Wiley & Sons, Ltd., vol. 20(7), pages 869-887.
    9. Munongo, Simon & Akanbi, Olusegun Ayo & Robinson, Zurika, 2017. "Do tax incentives matter for investment? A literature review," Business and Economic Horizons (BEH), Prague Development Center (PRADEC), vol. 13(2).
    10. Mr. Manuk Ghazanchyan & Mr. Alexander D Klemm & Yong Sarah Zhou, 2018. "Tax Incentives in Cambodia," IMF Working Papers 2018/071, International Monetary Fund.
    11. Emmanuel Ekow Asmah & Francis Kwaw Andoh & Edem Titriku, 2020. "Trade misinvoicing effects on tax revenue in sub‐Saharan Africa: The role of tax holidays and regulatory quality," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 91(4), pages 649-672, December.
    12. Mario Mansour, 2015. "Tax Policy in MENA Countries: Looking Back and Forward," IMF Working Papers 2015/098, International Monetary Fund.
    13. Prof. Nnamocha, P. N. & Anyanwu, Austin C. (PhD), 2022. "Domestic Investment and Economic Growth in Nigeria, 1980-2020," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 9(8), pages 122-131, August.
    14. Nguyen-Thanh, David & Strupat, Christoph, 2012. "Is the Burden Too Small? – Effective Tax Rates in Ghana," Ruhr Economic Papers 389, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    15. Segundo Camino‐Mogro, 2023. "Tax incentives, private investment and employment: Evidence from an Ecuadorian reform," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(7), pages 2129-2156, October.
    16. Mario Mansour & Mr. Gregoire Rota Graziosi, 2013. "Tax Coordination, Tax Competition, and Revenue Mobilization in the West African Economic and Monetary Union," IMF Working Papers 2013/163, International Monetary Fund.
    17. Oludotun Fasanya, David & Ingham, Hilary & Read, Robert, 2022. "Determinants of internationalisation by firms from Sub-Saharan Africa," Journal of Business Research, Elsevier, vol. 144(C), pages 951-965.
    18. Vanwalleghem, Dieter & Yildirim, Canan & Mukanya, Anthony, 2020. "Leveraging local knowledge or global advantage: Cross border bank mergers and acquisitions in Africa," Emerging Markets Review, Elsevier, vol. 42(C).
    19. Dierk Herzer & Michael Grimm, 2012. "Does foreign aid increase private investment? Evidence from panel cointegration," Applied Economics, Taylor & Francis Journals, vol. 44(20), pages 2537-2550, July.
    20. Tosin K. Gbadegesin & Nadege D. Yameogo, 2024. "Evaluating the Economic Impacts of the G20 Compact Initiative: Evidence from Causal Inference Using Advanced Machine Learning Techniques," Journal of Sustainable Development, Canadian Center of Science and Education, vol. 17(5), pages 1-56, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ajesde:v:1:y:2012:i:1:p:49-66. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=382 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.