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Does FDI affect GDP per-capita growth in sub-Saharan Africa?
Södertörn University, School of Social Sciences.
Södertörn University, School of Social Sciences.
2014 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

Economic growth is a goal for countries around the world in order to improve living standards, and the effect of foreign direct investments (FDI) has long been studied. There are today many theories and empirical studies regarding FDI. Many questions being studied but finding a straight answer to these have showed to be anything but easy. The results and conclusions go in different directions and much disagreement on whether or not FDI actually contributes to growth. One of the core triggers to the Chinese high economic growth pattern is attributed to FDI, this thesis investigates the same FDI impact on economic growth but with focus on sub-Sahara Africa. With the help of different theories and empirical studies we have selected our variables believing they will have a significant impact on this question. With the data collected from the World Bank database about the countries and seven different variables, a regression is created. The results show that FDI plays a part when it comes to GDP per-capita growth and also that corruption has a significant negative effect on growth rates. FDI in sub-Saharan Africa is hypothesized to mainly consist of brownfield investments as a potential explanation. The data this study uses is between 2005 and 2013, meaning the results are probably not applicable to be interpreted long-term.

Place, publisher, year, edition, pages
2014. , 44 p.
Keyword [en]
Corruption, Economic Growth, GDP per-capita, Growth, FDI, Foreign Direct Investment, Sub-Saharan Africa
National Category
URN: urn:nbn:se:sh:diva-26542OAI: diva2:793967
Subject / course
Social and Behavioural Science, Law
Available from: 2015-03-10 Created: 2015-03-09 Last updated: 2015-03-10Bibliographically approved

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