This paper, essentially empirical in nature, analyses the FDI determinants in Africa, independently from the already clearly identified attraction of natural resources. Do powers of anticipation, with respect to the general prospects for these economies, influence incoming flows of capital? What role is played by socio-political instability connected to the social consequences caused by conflicts? Are the processes of regionalisation enhancing the appeal of countries that are going down that path? From a panel of 28 African countries, the results from estimations obtained using the Hausman-Taylor method of instrumental variables show that the impact of projections on any ongoing decision to invest in the continent is not statistically significant. Our results also show that, although negative, the direct correlation between social risk, a proxy of socio-political instability, and flows of foreign investment is not systematically significant. However, the fact remains that these instabilities undermine national competencies (human capital) and compound certain ills such as HIV/Aids, whose impact on foreign investment increases along a negative curve in the presence of social risk. However, the simultaneous introduction of regionalisation processes into our estimations tends to lower the adverse effects of instability on certain explicative FDI variables.

(2013). Foreign direct investment in Africa: what are the key factors of attraction other than natural resources? [journal article - articolo]. In SAVINGS AND DEVELOPMENT. Retrieved from http://hdl.handle.net/10446/30752

Foreign direct investment in Africa: what are the key factors of attraction other than natural resources?

2013-01-01

Abstract

This paper, essentially empirical in nature, analyses the FDI determinants in Africa, independently from the already clearly identified attraction of natural resources. Do powers of anticipation, with respect to the general prospects for these economies, influence incoming flows of capital? What role is played by socio-political instability connected to the social consequences caused by conflicts? Are the processes of regionalisation enhancing the appeal of countries that are going down that path? From a panel of 28 African countries, the results from estimations obtained using the Hausman-Taylor method of instrumental variables show that the impact of projections on any ongoing decision to invest in the continent is not statistically significant. Our results also show that, although negative, the direct correlation between social risk, a proxy of socio-political instability, and flows of foreign investment is not systematically significant. However, the fact remains that these instabilities undermine national competencies (human capital) and compound certain ills such as HIV/Aids, whose impact on foreign investment increases along a negative curve in the presence of social risk. However, the simultaneous introduction of regionalisation processes into our estimations tends to lower the adverse effects of instability on certain explicative FDI variables.
articolo
2013
Cette contribution de nature essentiellement empirique analyse les déterminants des IDE en Afrique indépendamment de l’attrait déjà bien identifié pour les ressources naturelles. Les anticipations faites sur les perspectives générales de ces économies influencent- elle les flux de capitaux entrants? Quel rôle l’instabilité sociopolitique, approchée par les conséquences sociales causées par les conflits, joue-t-elle ? Les processus de régionalisation renforcent-ils l’attractivité des pays qui y adhèrent? Sur un panel de 28 pays africains, les résultats des estimations obtenus à l’aide de la méthode des variables instrumentales de Hausman-Taylor, montrent que l’impact que les prévisions peuvent avoir sur la décision encours d’investir dans le continent n’est pas statistiquement significatif. Nos résultats montrent également que, bien que négative, la corrélation directe entre le risque social, proxy de l’instabilité sociopolitique, et les flux d’investissements étrangers n’est pas systématiquement significative. En effet, les flux d’IDE ne se comportent pas de la même manière dans les pays traversés par des crises sociopolitiques. Il ressort toutefois que ces instabilités fragilisent les compétences nationales (capital humain) et aggravent certains maux tels que le VIH/Sida dont l’impact sur les investissements étrangers augmente négativement en présence du risque social. Cependant, l’introduction simultanément des processus de régionalisation dans nos estimations tend à réduire les méfaits de l’instabilité sur certaines variables explicatives des IDE.
Blancheton, Bertrand; OPARA OPIMBA, Lambert
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10446/30752
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