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Foreign ownership in Sub-Saharan Africa : Do governance structures matter?

Appiah-Kubi, Seth Nana Kwame ; Malec, Karel ; Kutin, Sandra Boatemaa ; Maitah, Mansoor ; Chiseni, Michael Chanda LU ; Phiri, Joseph ; Gebeltová, Zdeňka ; Kotásková, Sylvie Kobzev and Maitah, Kamil (2020) In Sustainability (Switzerland) 12(18).
Abstract

It has been widely argued that governance structures have roles in the predominance of foreign ownership in Sub-Saharan African countries. Our paper sought to challenge this conventional wisdom by investigating the ways in which country-level governance structures influenced the predominance of foreign holdings in Sub-Saharan African countries for the period 2010-2015. The study used panel sampling annual data from thirty countries in Sub-Saharan Africa, with Ordinary Least Squares (OLS) and Feasible Generalized Least Squares (FGLS) as our discussion estimators. Our statistical results reveal that there is a significant positive relationship between government effectiveness and the predominance of foreign ownership in Sub-Saharan... (More)

It has been widely argued that governance structures have roles in the predominance of foreign ownership in Sub-Saharan African countries. Our paper sought to challenge this conventional wisdom by investigating the ways in which country-level governance structures influenced the predominance of foreign holdings in Sub-Saharan African countries for the period 2010-2015. The study used panel sampling annual data from thirty countries in Sub-Saharan Africa, with Ordinary Least Squares (OLS) and Feasible Generalized Least Squares (FGLS) as our discussion estimators. Our statistical results reveal that there is a significant positive relationship between government effectiveness and the predominance of foreign ownership in Sub-Saharan African countries. Furthermore, foreign ownership predominates in Sub-Saharan African economies that have sound political stability and embrace effective and efficient regulations. Moreover, the relationship between corruption and the prevalence of foreign ownership is negative but significant. However, the rule of law, and voice and accountability, are insignificant to the predominance of foreign ownership in Sub-Saharan Africa. Our results suggest that governments in Sub-Saharan Africa should adopt robust and efficacious measures, strengthen their policies and institutions to promote the control of corruption, provide quality regulations, and minimize political violence.

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author
; ; ; ; ; ; ; and
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Corruption, Foreign ownership, Government effectiveness, Political stability, Sub-Saharan Africa
in
Sustainability (Switzerland)
volume
12
issue
18
article number
7698
publisher
MDPI AG
external identifiers
  • scopus:85091201748
ISSN
2071-1050
DOI
10.3390/su12187698
language
English
LU publication?
yes
id
3d74767c-808f-4be0-ad9e-f5ca007afe72
date added to LUP
2020-10-27 13:56:35
date last changed
2020-11-02 08:44:21
@article{3d74767c-808f-4be0-ad9e-f5ca007afe72,
  abstract     = {<p>It has been widely argued that governance structures have roles in the predominance of foreign ownership in Sub-Saharan African countries. Our paper sought to challenge this conventional wisdom by investigating the ways in which country-level governance structures influenced the predominance of foreign holdings in Sub-Saharan African countries for the period 2010-2015. The study used panel sampling annual data from thirty countries in Sub-Saharan Africa, with Ordinary Least Squares (OLS) and Feasible Generalized Least Squares (FGLS) as our discussion estimators. Our statistical results reveal that there is a significant positive relationship between government effectiveness and the predominance of foreign ownership in Sub-Saharan African countries. Furthermore, foreign ownership predominates in Sub-Saharan African economies that have sound political stability and embrace effective and efficient regulations. Moreover, the relationship between corruption and the prevalence of foreign ownership is negative but significant. However, the rule of law, and voice and accountability, are insignificant to the predominance of foreign ownership in Sub-Saharan Africa. Our results suggest that governments in Sub-Saharan Africa should adopt robust and efficacious measures, strengthen their policies and institutions to promote the control of corruption, provide quality regulations, and minimize political violence.</p>},
  author       = {Appiah-Kubi, Seth Nana Kwame and Malec, Karel and Kutin, Sandra Boatemaa and Maitah, Mansoor and Chiseni, Michael Chanda and Phiri, Joseph and Gebeltová, Zdeňka and Kotásková, Sylvie Kobzev and Maitah, Kamil},
  issn         = {2071-1050},
  language     = {eng},
  number       = {18},
  publisher    = {MDPI AG},
  series       = {Sustainability (Switzerland)},
  title        = {Foreign ownership in Sub-Saharan Africa : Do governance structures matter?},
  url          = {http://dx.doi.org/10.3390/su12187698},
  doi          = {10.3390/su12187698},
  volume       = {12},
  year         = {2020},
}