Accesses In Determining Foreign Direct Investment Panel Data Analysis Of Sub-saharan Africa Countries

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More recently, due to the globalization process and the increasing roles ofrnMultinational Corporation in economic development, many empirical literatures havernbeen tryi ng to take into account the effects of not only the classical factors: but alsornthe various institutional issues which affect considerably the For flow in the hostrncountries. So, the objective of this paper is to explore the major accesses to FDl flowrnto the Sub Saharan Africa countries by focu sing on main institutional factors, andrnother conventional variables in For flow to the region. For this purpose, we employedrntwo panel model techniques: the fixed effect and dynamic panel model (the systemrnGMM estimator of Arellano and Bover (1995) and Blundell and Bond (1998)) byrnutili zing the data of 32 SSA countries covering the period 1994-20 I O. Our findingsrnreveal that among the in stitutional quality variables ( regulatory quality), past level ofrninward FDI, market size, openness, natural resource availability, financialrndevelopment if supported by regulatory quality are found to be important derivers ofrnFDI flow to the region. Conversely measures in control of corrupt ion, the existing rulernof law, macroeconomic condition (i.e. inflation and exchange rate) and infrastructuralrnsituation are found to be insignificant for the region's FDI flow. To increase For flowrnto the region policy makers (economic administers) of the region need to strive tornimprove and amend their policy regarding their institutions: rule of law, the way torncontrol corruption, develop infrastructures, improve macroeconomic condition andrnshould diversify and develop their economies.

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Accesses In Determining Foreign Direct Investment Panel Data Analysis Of Sub-saharan Africa Countries

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