Political Instability, FDI and Economic Growth in Sub-Saharan African Countries: Evidence from Modelling Dynamic Simultaneous Equations

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dc.contributor.authorGakpa, Lewis Landry
dc.date.accessioned2020-02-05T08:49:52Z
dc.date.available2020-02-05T08:49:52Z
dc.date.issued2020-01-08
dc.descriptionResearch paperen_US
dc.description.abstractThe aim of this study is to examine the consequences of interaction between political instability and foreign direct investment (FDI) on economic growth of 31 countries in Sub-Saharan Africa in order to analyse one of the channels through which political instability affects economic growth. To achieve this objective, the study relies on a dynamic panel procedure and the Three Stage Least Squares Method to estimate a model of simultaneous equations over the period 1984-2015. The empirical results indicate that political instability affects economic growth directly and indirectly through its impact on foreign direct investment. We also highlight the simultaneous character of the relationship between political instability and the level of economic development in Sub-Saharan African countries. The results of the study then corroborate the idea that political instability hinders growth and thus calls for measures to improve the quality of political climate, which is one of the conditions necessary for a country’s economy to benefit from foreign direct investment.en_US
dc.description.sponsorshipAERCen_US
dc.identifier.isbn978-9966-61-065-2
dc.identifier.urihttps://publication.aercafricalibrary.org/handle/123456789/497
dc.publisherAERCen_US
dc.relation.ispartofseriesResearch Paper 372;RESEARCH PAPER 372
dc.subjectPolitical instabilityen_US
dc.subjectFDIen_US
dc.subjecteconomic growthen_US
dc.subjectsimultaneous equation modelen_US
dc.subjectSub-Saharan Africaen_US
dc.titlePolitical Instability, FDI and Economic Growth in Sub-Saharan African Countries: Evidence from Modelling Dynamic Simultaneous Equationsen_US
dc.typeArticleen_US
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