Biblioteca Digital de VanguardiaReal Exchange Rate and Foreign Direct Investment in Sub-Saharan Africa. Some Empirical Results
Despite the well acknowledged importance of foreign direct investment (fdi) and efforts of sub-Sahara African (ssa) countries at attracting it, the region remains the least destination for fdi globally. Of course, several studies have endeavored to examine the determinants of fdi in this region. Thi...
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| Formato: | artículo científico |
| Lenguaje: | Inglés |
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Centro de Investigación y Docencia Económicas, A.C.
2012
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| Acceso en línea: | http://www.redalyc.org/articulo.oa?id=32324513006 http://biblioteca-repositorio.clacso.edu.ar/handle/CLACSO/82900 |
| _version_ | 1782336512292028416 |
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| author | Oluremi Ogun Festus O. Egwaikhide Eric K. Ogunleye |
| author_facet | Oluremi Ogun Festus O. Egwaikhide Eric K. Ogunleye |
| author_sort | Oluremi Ogun |
| collection | Repositorio |
| description | Despite the well acknowledged importance of foreign direct investment (fdi) and efforts of sub-Sahara African (ssa) countries at attracting it, the region remains the least destination for fdi globally. Of course, several studies have endeavored to examine the determinants of fdi in this region. This study contributes to the literature by examining a possible determinant of fdi that has received less attention in the literature: real exchange rate (rer) movements. This paper examines this relationship with a view to determining the extent to which real exchange rate movements stifle fdi inflows in selected ssa countries, employing the Granger causality and simultaneous estimation techniques. The use of simultaneous equation is informed by the theoretical and empirical inconclusiveness on the relationship between movements in rer and fdi. The Granger Causality test further provides insight on the causal direction of the variables. Whereas the causality tests suggest statistical dependence between rer movements and fdi for a few of the countries, the regression analyses show a statistically significant relationship between these variables. While the inclusion of pre-reform period in the study may have contributed to these results, the general picture emerging is that fdi flows are sensitive to reer movements in ssa. |
| format | artículo científico |
| id | clacso-CLACSO82900 |
| institution | CLACSO, Repositorio Digital |
| language | Inglés |
| publishDate | 2012 |
| publisher | Centro de Investigación y Docencia Económicas, A.C. |
| record_format | greenstone |
| spelling | clacso-CLACSO829002022-03-22T16:07:51Z Real Exchange Rate and Foreign Direct Investment in Sub-Saharan Africa. Some Empirical Results Oluremi Ogun Festus O. Egwaikhide Eric K. Ogunleye Economía y Finanzas Fdi real exchange rate Granger causality system estimation sub-Saharan Africa Despite the well acknowledged importance of foreign direct investment (fdi) and efforts of sub-Sahara African (ssa) countries at attracting it, the region remains the least destination for fdi globally. Of course, several studies have endeavored to examine the determinants of fdi in this region. This study contributes to the literature by examining a possible determinant of fdi that has received less attention in the literature: real exchange rate (rer) movements. This paper examines this relationship with a view to determining the extent to which real exchange rate movements stifle fdi inflows in selected ssa countries, employing the Granger causality and simultaneous estimation techniques. The use of simultaneous equation is informed by the theoretical and empirical inconclusiveness on the relationship between movements in rer and fdi. The Granger Causality test further provides insight on the causal direction of the variables. Whereas the causality tests suggest statistical dependence between rer movements and fdi for a few of the countries, the regression analyses show a statistically significant relationship between these variables. While the inclusion of pre-reform period in the study may have contributed to these results, the general picture emerging is that fdi flows are sensitive to reer movements in ssa. 2012 2022-03-22T16:07:51Z 2022-03-22T16:07:51Z artículo científico http://www.redalyc.org/articulo.oa?id=32324513006 http://biblioteca-repositorio.clacso.edu.ar/handle/CLACSO/82900 en http://www.redalyc.org/revista.oa?id=323 Economía Mexicana. Nueva Época application/pdf Centro de Investigación y Docencia Económicas, A.C. Economía Mexicana. Nueva Época (México) Num.1 Vol.XXI |
| spellingShingle | Economía y Finanzas Fdi real exchange rate Granger causality system estimation sub-Saharan Africa Oluremi Ogun Festus O. Egwaikhide Eric K. Ogunleye Real Exchange Rate and Foreign Direct Investment in Sub-Saharan Africa. Some Empirical Results |
| title | Real Exchange Rate and Foreign Direct Investment in Sub-Saharan Africa. Some Empirical Results |
| title_full | Real Exchange Rate and Foreign Direct Investment in Sub-Saharan Africa. Some Empirical Results |
| title_fullStr | Real Exchange Rate and Foreign Direct Investment in Sub-Saharan Africa. Some Empirical Results |
| title_full_unstemmed | Real Exchange Rate and Foreign Direct Investment in Sub-Saharan Africa. Some Empirical Results |
| title_short | Real Exchange Rate and Foreign Direct Investment in Sub-Saharan Africa. Some Empirical Results |
| title_sort | real exchange rate and foreign direct investment in sub-saharan africa. some empirical results |
| topic | Economía y Finanzas Fdi real exchange rate Granger causality system estimation sub-Saharan Africa |
| url | http://www.redalyc.org/articulo.oa?id=32324513006 http://biblioteca-repositorio.clacso.edu.ar/handle/CLACSO/82900 |