The Determinants Of Foreign Direct Investment In Zambia

This study tests the determinants of foreign direct Investment (FDI) in zambia and itsrneffects on the trade balance. The results suggest that natural resource endowment, foreignrndebt overhang, domestic credit availability, the size of domestic market, and risk andrnuncertainty in the investment environment are the most important macroeconomicrndeterminants of fDI in zambia. Furthermore, the resuits indicate that FDI promotesrnexports and is import substituting in Zambia. Thus, attracting more inflows of FDI wouldrnfavovrably impact on Zambia's trade balance and the overall balance of payments.

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