scholarly journals Foreign Direct Investment in Africa: The Role of Natural Resources, Market Size, Government Policy, Institutions and Political Instability

World Economy ◽  
2006 ◽  
Vol 29 (1) ◽  
pp. 63-77 ◽  
Author(s):  
Elizabeth Asiedu
Keyword(s):  
Foreign Direct Investment ◽  
Natural Resources ◽  
Government Policy ◽  
Direct Investment ◽  
Political Instability ◽  
Market Size

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.

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