THE DETERMINANTS AND IMPACT OF FOREIGN DIRECT INVESTMENT ON THE ECONOMIC GROWTH OF SIERRA LEONE
DOI:
https://doi.org/10.46827/ejefr.v8i3.1710Paraules clau:
foreign direct investment, economic growth, determinants, impact, Sierra LeoneResum
This article aims to examine the factors that influence foreign direct investment (FDI) and its effects on Sierra Leone's economic expansion. Understanding the elements that draw foreign direct investment (FDI) and its overall effects on the recipient country's economy is crucial as FDI has long been acknowledged as a driver for economic development in developing nations. This study used a mixed-methods approach to examine the factors influencing foreign direct investment (FDI) in Sierra Leone by analyzing both qualitative and quantitative data. Interviews with important stakeholders, including government officials, foreign investors, and industry experts, are used to analyze factors such as political stability, institutional quality, market size, natural resources, and infrastructure. Secondary data are statistically analyzed to determine the importance of these determinants. In addition, the study evaluates how FDI affects Sierra Leone's economic expansion. Analyzing macroeconomic data like GDP growth, employment rates, trade patterns, and technology transfer are necessary for this research. The research offers a thorough understanding of the direct and indirect effects of FDI on the nation's economy by utilizing both descriptive and econometric methodologies. The results of this study have added to the body of information already available on foreign direct investment (FDI) and its effects on economic growth in developing nations, with a particular emphasis on Sierra Leone. Policymakers, government organizations, and investors will be able to create focused strategies to draw in and maximize the advantages of FDI for sustainable economic development with the help of the results, which offers insightful information.
JEL: F21, F23, O55, O11, C83, C18, P48
Article visualizations:
Referències
Adefeso, H.A and A.A Agboola (2012), “Determinants of foreign direct inflows in Nigeria: An empirical investigation”, International Business Management, Vol. 6 No1, pp. 83-89
Africano, A.P and M. Magalhaes (2007), “A Panel Analysis of the FDI Impact on International Trade”, FEP Working Papers, No. 235, Faculdade de economia, Universidade do Porto.
Agarwal, J. P. (1980), “Determinants of Foreign Direct Investment: A Survey”, Weltwirtschaftliches Archive, Vol. 116, No 4, pp. 739-773
Ajid, K.B (2014), “Determinants of foreign direct investment in ECOWAS countries: The roles of governance and human capital”, The Empirical Econometrics and Quantitative Economics Letters, Vol.3 No 2, pp. 61-74
Aliber, R.Z (1970), “A Theory of Direct Foreign Investment’’, in Kindleberger C.P (ed.), the International Corporation. Cambridge, MA: MIT Press
Anyanwu, J.C (2012). Why does foreign direct investment go where it goes?: New evidence from African countries. Annals of Economics and Finance, 13(2), 425-462.
Anyanwu, J.C. & Erhijakpor, A.E (2014). Does oil wealth affect democracy in Africa? African Development Review, 26(1), 15-37.
Asiedu, E. (2002), “On the Determinants of Foreign Direct Investment to Developing Countries: Is Africa Different?”, World Development, Vol. 30, No. 1, pp. 107-119.
Asiedu, E. (2004), “Policy Reform and Foreign Direct Investment in Africa: Absolute Progress but Relative Decline”, Development Policy Review, Vol. 22, No. 1, pp. 41-48.
Asiedu, E. (2006), “Foreign Direct Investment in Africa: The Role of Natural Resources, Market Size, Government Policy, Institutions and Political Instability”, World Economy Vol. 29, No. 1, pp. 63-77.
Bende-Nabende, A. (2002), “Foreign direct investment determinants in Sub-Sahara Africa: A Co-integration analysis”, Economics Bulletin, Vol. 6, No .4, pp. 1-19
Bhattacharya, A., P.J. Montiel and S. Sharma (1997), “How can Sub-Saharan Africa Attract More Private Capital Inflows?”, Finance and Development, Vol. 34, No.21, pp. 3-6.
Blonigen, B.A (2002), “Tariff-jumping antidumping duties”, Journal of International Economics, Vol. 57, pp. 31-50.
Boeck, D.R (2008), OECD Bench Mark Definition of Foreign Direct Investment, 4th ed. Paris. OECD Publishing.
Brainard, S.L (1993b), “An Empirical Assessment of the Factor Proportions Explanation of Multinationals Sales”, NBER Working paper, No.4580, Cambridge, MA: National Bureau of Economic Research.
BSL (2001), Articles and Publications, Bank of Sierra Leone Bulletin. Available at http://www.bankofsierraleone-centralbank.org/bulletins.html Accessed on 31.10.2016
Conteh, F.M, & Mendy, J. (2017). Foreign direct investment and economic growth in Sierra Leone. African Journal of Economic and Management Studies, 8(3), 349-363.
Giles, D (2017), The Eviews Blog on ARDL - Part 3 Available at http://davegiles.blogspot.pt/2017/05/the-eviews-blog-on-ardl-part-3.html Accessed on 30.06.2017
Markusen, J.R. (1997), “Trade versus investment liberalization”. NBER Working Paper 6231. Cambridge, MA: National Bureau of Economic Research.
Mendy, J., & Conteh, F.M (2018). Determinants of foreign direct investment (FDI) in Sierra Leone. Journal of Economic Studies, 45(1), 66-86.
Ministry of Trade and Industry (2009), Unleashing the Talent of Our People, a vision and a promise: Private Sector Development Strategy for Sierra Leone, 2009 –2014. Freetown.
Mohamed, S.E and M.G Sidiropoulos (2010), “Another look at the determinants of foreign direct investment in MENA countries: an empirical investigation”, Journal of Economic Development, Vol. 35, No.2, pp. 75-95
Morisset, J. (2000), “Foreign Direct Investment in Africa: Policies Also Matter”, Transnational Corporations, Vol. 9, No.2, pp. 107-25.
Musonera, E.,B Nyamulinda and E. Karuranga (2010), “FDI Fitness in Sub-Saharan Africa: The case of Eastern African Community”, The Journal of International Business Research and Practice, Vol. 4
Naude, W.A and W.F Krugell (2007), “Investigating geography and institutions as determinants of foreign direct investment in Africa using panel data”, Applied Economics, Vol. 39, No.10, pp. 1223-1233.
Osabuohien, E.S, Efobi, U.R, Herrmann, R. T., & Gitau, C. M. (2019). Female labor outcomes and large-scale agricultural land investments: Macro-micro evidence from Tanzania. Land Use Policy, 82, 716-728.
Panitchpakdi, S. (2013), World Investment Report Methodological Note. Geneva. United Nations Conference on Trade and Development.
Perrault, F.,Y Baldeh, J. Wahome and Z. Wahid (2013), Sierra Leone country strategy paper 2013-2017. Tunis. African Development Bank Group.
Pesaran, M. H, Y. Shin and R. J Smith (2001), “Bounds Testing Approaches to the Analysis of Level Relationships”, Journal of Applied Econometrics, Vol. 16, pp. 289-326.
Pesaran, M.H and B. Pesaran (1997), Working with Microfit 4.0: Interactive Econometric Analysis. Oxford: Oxford University Press.
Philipps, P.C. B and P. Perron (1988), “Testing for a unit root in time series regression”, Biometrica, Vol. 75, No.2, pp. 335-46.
Poku, P.K., J. Antwi and G.O Antwi (2013), “Foreign Direct Investment: A Journey to Economic Growth in Ghana – Empirical Evidence”, International Business and Economics Research Journal, Vol. 12, No. 5
Schoeman, N.J., Z.C. Robinson and T.J.de-wet (2000), “Foreign Direct Investment Flows and Fiscal Discipline in South Africa”, South Africa Journal of Economic and Management Sciences, Vol. 3 No. 2, pp. 235-44.
World Bank. (2020). World Development Indicators. Retrieved from https://databank.worldbank.org/source/world-development-indicators
