AGOA: Economic and Political Effects on FDI Flows Into Sub-Saharan Africa

Authors

  • Osei Yeboah North Carolina Agricultural and Technical State University
  • Saleem Shaik USDA-Economic Research Service
  • Michael Wuaku North Carolina Agricultural and Technical State University

DOI:

https://doi.org/10.33423/jabe.v23i5.4578

Keywords:

business, economics, foreign direct investment, AGOA, modified gravity model, Heckman selection model

Abstract

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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Articles