AGOA: Economic and Political Effects on FDI Flows Into Sub-Saharan Africa
DOI:
https://doi.org/10.33423/jabe.v23i5.4578Keywords:
business, economics, foreign direct investment, AGOA, modified gravity model, Heckman selection modelAbstract
Foreign Direct Investment (FDI) is widely considered as an important stimulus to the economic growth in the form of employment, technology transfer; and regional economic integration among others. This paper seeks to determine the effects of the Africa Growth and Opportunity Act (AGOA) on FDI flows into SubSaharan Africa. Using a modified gravity model, results suggests that per capita GDP and AGOA participation status positively influences FDI inflow into Sub-Saharan Africa while being a member of other RTAs (Other Regional Trade Agreements) hinder FDI net flow. Also, countries with generally better political stability index score have higher average FDI net flow.
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Published
2021-09-16
How to Cite
Yeboah, O., Shaik, S., & Wuaku, M. (2021). AGOA: Economic and Political Effects on FDI Flows Into Sub-Saharan Africa. Journal of Applied Business and Economics, 23(5). https://doi.org/10.33423/jabe.v23i5.4578
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