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An investigation into how Sub-Saharan Africa’s human development is affected by Chinese versus German Foreign Direct Investments from 2005-2022

Klämfeldt Forslid, Sofia LU and Carle, Philip LU (2025) NEKH02 20251
Department of Economics
Abstract
The purpose of this investigation is to examine how Chinese and German Foreign Direct Investments (FDI) affect human development in Sub-Saharan Africa (SSA), as measured by the Human Development Index (HDI), and to explore potential reasons for any differences in their respective impacts. The investigation is based on two multiple linear regression models, both implementing OLS fixed effects estimation, and secondary panel data from 44 SSA countries covering the period 2005–2022. The regression analysis finds a weak but statistically significant relationship between Chinese FDI inflows and HDI, at a 5% level of significance. It finds no statistically significant relationship between German FDI inflows and HDI at any level of significance.
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author
Klämfeldt Forslid, Sofia LU and Carle, Philip LU
supervisor
organization
course
NEKH02 20251
year
type
M2 - Bachelor Degree
subject
keywords
Foreign Direct Investment (FDI), Human Development Index (HDI), Sub-Saharan Africa (SSA), China and Germany, Panel Data Regression
language
English
id
9208412
date added to LUP
2025-09-12 09:17:20
date last changed
2025-09-12 09:17:20
@misc{9208412,
  abstract     = {{The purpose of this investigation is to examine how Chinese and German Foreign Direct Investments (FDI) affect human development in Sub-Saharan Africa (SSA), as measured by the Human Development Index (HDI), and to explore potential reasons for any differences in their respective impacts. The investigation is based on two multiple linear regression models, both implementing OLS fixed effects estimation, and secondary panel data from 44 SSA countries covering the period 2005–2022. The regression analysis finds a weak but statistically significant relationship between Chinese FDI inflows and HDI, at a 5% level of significance. It finds no statistically significant relationship between German FDI inflows and HDI at any level of significance.}},
  author       = {{Klämfeldt Forslid, Sofia and Carle, Philip}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{An investigation into how Sub-Saharan Africa’s human development is affected by Chinese versus German Foreign Direct Investments from 2005-2022}},
  year         = {{2025}},
}