Globalization, Foreign Direct Investment and Economic Growth in Sub Saharan Africa
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Date
2014
Authors
Saibu, Olufemi Muibi
Akinbobola, Temidayo. O
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of Economics and International Finance
Abstract
The paper examined contributions of foreign direct investment, globalization to real economic growth
fluctuation in selected sub-Saharan Africa countries. Adopting the conventional vector autoregressive
mechanism the time series data from the selected countries, the result showed that out of the eleven
countries studied, foreign direct investment explained the highest proportion in just three countries,
Morocco, Ethiopia, and Zimbabwe. Except in Tunisia, Tanzania and Kenya, where the degree of
economic openness explained substantial proportion of the output fluctuations, the variations in most
of the countries were explained by factors beyond foreign direct investment and economic openness.
The result supports the existing finding on African economies that trade liberalization had not
substantially impaired economic growth process of the sub African economies as alluded to by
previous studies. The upsurge in the capital flows to African economies was also insufficient insulate
the economic from the global meltdown and furthermore kick start post crisis economy recovery in
Southern African countries. Therefore, the paper concludes that fluctuations in real economic growth in
these countries might be beyond the external shocks from the capital inflows and trade flows.
Description
Keywords
Globalization, FDI, Economic Growth and Sub-Saharan Africa
Citation
Saibu M. O and T. O Akinbobola (2014) Globalization, Foreign Direct Investment and Economic Growth in Sub Saharan Africa Journal of Economics and International Finance Volume 6, Issue.