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Spatial Effects of Foreign Direct Investment Flows on Industrial Performance in Sub-Saharan African Countries
[Effets spatiaux des flux d'investissements directs étrangers sur la performance industrielle dans les pays d'Afrique subsaharienne]

Author

Listed:
  • Kirsi Zongo

    (Université Norbert ZONGO de Koudougou)

  • Mahamadou Diarra

    (Université Norbert ZONGO de Koudougou)

Abstract

This paper rigorously analyzes the effects of foreign direct investment inflows on the industrial performance in the Sub-Saharan African (SSA) economies. Applying the Durbin spatial method (SDM) on a two-sector model to account for spatial effects, the empirical results show that the higher the capacity of SSA countries to attract foreign investments, the higher is the job-inducing effect and value-added created in the industrial sector, while no technology transfer was induced. This finding highlights the importance for the countries of sub-Saharan Africa to direct foreign direct investment towards strategic sectors where they benefit from comparative advantages and improve the business climate to attract more FDI, a pledge of any industrial development.

Suggested Citation

  • Kirsi Zongo & Mahamadou Diarra, 2022. "Spatial Effects of Foreign Direct Investment Flows on Industrial Performance in Sub-Saharan African Countries [Effets spatiaux des flux d'investissements directs étrangers sur la performance indust," Working Papers hal-03578615, HAL.
    • Handle: RePEc:hal:wpaper:hal-03578615
    Note: View the original document on HAL open archive server: https://hal.science/hal-03578615v2
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    References listed on IDEAS

    as
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    Keywords

    Spatial Econometrics; Industrial Performance; Foreign Direct Investment;
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