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Determinants of FDI in Africa: The role of agglomeration in Africa´s performance of attracting FDI

Adinda, Safahati LU (2018) NEKM01 20172
Department of Economics
Abstract
Abstract
Acknowledging the macro- and microeconomic importance of foreign direct investment (FDI), this paper aims at examining the determinants, in particular how the agglomeration forces determine the inward FDI in Africa. A comprehension of these determinants is important in order to maintain the positive development and improve the performance of attracting FDI in Africa. Results from my cross-country regression estimations from 2008 to 2016 suggest that: (i) the inward FDI in Africa can be explained by combinations of variables market size, economic stability, openness and agglomeration; (ii) there is a positive correlation between market size and the inward FDI; (iii) agglomeration has positive impact on the inward FDI; (iv) Western... (More)
Abstract
Acknowledging the macro- and microeconomic importance of foreign direct investment (FDI), this paper aims at examining the determinants, in particular how the agglomeration forces determine the inward FDI in Africa. A comprehension of these determinants is important in order to maintain the positive development and improve the performance of attracting FDI in Africa. Results from my cross-country regression estimations from 2008 to 2016 suggest that: (i) the inward FDI in Africa can be explained by combinations of variables market size, economic stability, openness and agglomeration; (ii) there is a positive correlation between market size and the inward FDI; (iii) agglomeration has positive impact on the inward FDI; (iv) Western and Middle Africa attract less FDI, whist southern African affiliation is positively correlated with the inward FDI. (Less)
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author
Adinda, Safahati LU
supervisor
organization
course
NEKM01 20172
year
type
H1 - Master's Degree (One Year)
subject
keywords
Foreign direct investment, Determinants of FDI, Agglomeration forces, African countries
language
English
id
8938825
date added to LUP
2018-04-18 09:18:50
date last changed
2018-04-18 09:18:50
@misc{8938825,
  abstract     = {{Abstract
Acknowledging the macro- and microeconomic importance of foreign direct investment (FDI), this paper aims at examining the determinants, in particular how the agglomeration forces determine the inward FDI in Africa. A comprehension of these determinants is important in order to maintain the positive development and improve the performance of attracting FDI in Africa. Results from my cross-country regression estimations from 2008 to 2016 suggest that: (i) the inward FDI in Africa can be explained by combinations of variables market size, economic stability, openness and agglomeration; (ii) there is a positive correlation between market size and the inward FDI; (iii) agglomeration has positive impact on the inward FDI; (iv) Western and Middle Africa attract less FDI, whist southern African affiliation is positively correlated with the inward FDI.}},
  author       = {{Adinda, Safahati}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Determinants of FDI in Africa: The role of agglomeration in Africa´s performance of attracting FDI}},
  year         = {{2018}},
}