Foreign Direct Investment in Ghana: The Role of Infrastructural Development and Natural Resources

2017 ◽  
Vol 29 (4) ◽  
pp. 575-588 ◽  
Author(s):  
Ebenezer Bugri Anarfo ◽  
Abel Mawuko Agoba ◽  
Robert Abebreseh
Keyword(s):  
Foreign Direct Investment ◽  
Natural Resources ◽  
Direct Investment ◽  
Infrastructural Development

scholarly journals Natural Resources and Foreign Direct Investment in Africa: Evidence from Chinese Firms

2020 ◽  
Vol 12 (22) ◽  
pp. 9616
Author(s):  
Yan Chen ◽  
Ruirui Zhai ◽  
Kevin H. Zhang
Keyword(s):  
Foreign Direct Investment ◽  
Natural Resources ◽  
Direct Investment ◽  
Chinese Government ◽  
Outward Foreign Direct Investment ◽  
The West ◽  
Testing Hypotheses ◽  
Poor Countries ◽  
Chinese Investment

The rise of China’s outward foreign direct investment (OFDI) in Africa has promoted the continent’s economic growth but generated controversy in the West. What drives Chinese investment in the continent with abundant natural resources but poor institutions/governance? While the topic is important, studies on the issue in the literature have been limited. This paper attempts to close the gap by testing hypotheses of the role of resources and institutions with panel data in 2003–2013. Estimates suggest that the Chinese investment is not biased toward resource-rich and institution-poor countries but similar to Western investment, and China’s OFDI is largely profit-driven, just like investors from other countries. Institutional supports from the Chinese government, however, seems to be important to China’s OFDI in Africa.

scholarly journals Regional economic integration, natural resources and foreign direct investment in SADC

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gameli Adika
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Natural Resources ◽  
Economic Integration ◽  
Natural Resource ◽  
Direct Investment ◽  
Least Square ◽  
Regional Economic Integration ◽  
Content Type

PurposeThis paper aims to examine the role of economic integration and natural resources and foreign direct investment (FDI) complementarity in explaining economic growth in the Southern African Development Community (SADC).Design/methodology/approachThe study employed the ordinary least square-random effects and the generalized two-stage least square instrumental variables (IV) regression to examine the relationship between the variables.FindingsThe authors find that regional economic integration and natural resource abundance are essential for promoting economic growth. The results further show a potential resource curse phenomenon, offset by the complementary effect of FDI in resource-rich countries. The findings are robust after conditioning for different measures of institutional quality.Practical implicationsThe findings suggest the need for deeper regional trade integration and international cooperation, prudent natural resource management and concerted effort toward economic diversification.Originality/valueMany studies have examined the determinants of economic growth in the Southern African Development Community (SADC). However, these studies did not incorporate or assess the potential of economic integration in the region. Moreover, studies that examined the growth effects of FDI did not assess the complementary role of the region's natural resource endowment which potentially drives FDI inflows. This study fills these gaps and provides a robust analysis of economic growth drivers in the region.

Foreign Direct Investment Determinants in Oil Exporting Countries: Revisiting the Role of Natural Resources

2019 ◽  
Vol 19 (1) ◽  
pp. 33-65
Author(s):  
Mohamed Abdelaziz Eissa ◽  
Mohammed M. Elgammal
Keyword(s):  
Foreign Direct Investment ◽  
Natural Resources ◽  
United Arab Emirates ◽  
Direct Investment ◽  
Negative Impact ◽  
Trade Openness ◽  
Market Growth ◽  
Gcc Countries ◽  
Foreign Direct Investment Determinants

This article explores the determinants of foreign direct investment (FDI) in oil-dependent economies and revisits the role of natural resources in attracting FDI to countries of this kind. Panel data from the six Gulf Cooperation Council (GCC) countries, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, have been employed, covering the period from 1990 to 2015. First, we investigate the FDI determinants during the entire sample period, and then run another investigation starting from the beginning of 2000, when the FDI in the GCC region increased substantially. The results show that there is a positive nexus between market growth, trade openness, inflation, infrastructure, oil price and FDI. Interestingly, oil reserves have a negative impact on FDI; this may be because countries with large reserves of oil like the GCC countries have enough financial resources to finance their economic development. This leads these governments to set up restrictions to protect their resources, thus reducing the amount of resource-seeking FDI. JEL Codes: E22, F21, F23, F43, O13

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