scholarly journals Economic Crisis Influence on FDI and Foreign Inflows in Sub-Saharan Africa Economies

2017 ◽  
Vol 13 (31) ◽  
pp. 557 ◽  
Author(s):  
Scholastica Achieng Odhiambo
Keyword(s):  
Foreign Aid ◽  
Economic Crisis ◽  
Positive Impact ◽  
Likelihood Estimation ◽  
Capital Inflows ◽  
Sub Saharan Africa ◽  
Resource Base ◽  
Fdi Inflows ◽  
Foreign Capital Inflows ◽  
Sub Saharan

The global economic crisis affected most of developed economies in North America and Europe which was likely to trigger a trickle-down effects on Sub-Saharan Africa. This effect was characterized by falling exports demand, foreign capital inflows in terms of foreign direct investment (FDI), foreign aid inflows and remittances from African immigrants working in the ICs. This paper investigated the effects of economic crisis on FDI and the foreign aid inflows in four countries which include Botswana, Kenya, Malawi and Mozambique. Panel data was used for analysis with OLS, Random Effects and Maximum Likelihood Estimation from 1990-2010 was conducted. The results show that contrary to the expectation that economic crisis had negative effects on FDI inflows in SSA it was the other way round. Economic crisis has a positive impact on FDI inflows. This maybe because of natural resource oriented FDIs in Mozambique and Botswana and low integration in world markets for Kenya and Malawi (Most FDI are primary resource base such as agriculture).

scholarly journals Trade and FDI thresholds of CO2 emissions for a Green economy in sub-Saharan Africa

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Simplice Asongu ◽  
Nicholas M. Odhiambo
Keyword(s):  
Negative Impact ◽  
Positive Impact ◽  
Trade Openness ◽  
Sub Saharan Africa ◽  
Green Economy ◽  
Fdi Inflows ◽  
Content Type ◽  
Sub Saharan ◽  
Generalised Method Of Moments ◽  
The Relationship

Purpose This study aims to focus on assessing how improving openness influences carbon dioxide (CO2) emissions in sub-Saharan Africa (SSA). Design/methodology/approach This study focusses on 49 countries in SSA for the period 2000–2018 divided into: 44 countries in SSA for the period 2000–2012; and 49 countries for the period 2006–2018. Openness is measured in terms of trade and foreign direct investment (FDI) inflows. The empirical evidence is based on the generalised method of moments. Findings The following main findings are established. First, enhancing trade openness has a net positive impact on CO2 emissions, while increasing FDI has a net negative impact. Second, the relationship between CO2 emissions and trade is a Kuznets shape, while the nexus between CO2 emissions and FDI inflows is a U-shape. Third, a minimum trade openness (imports plus exports) threshold of 100 (% of gross domestic product (GDP)) and 200 (% of GDP) is beneficial in promoting a green economy for the first and second samples, respectively. Fourth, FDI is beneficial for the green economy below critical masses of 28.571 of net FDI inflows (% of GDP) and 33.333 of net FDI inflows (% of GDP) for first and second samples, respectively. It follows from findings that while FDI can be effectively managed to reduce CO2 emissions, this may not be the case with trade openness because the corresponding thresholds for trade openness are closer to the maximum limit. Originality/value This study complements the extant literature by providing critical masses of trade and FDI that are relevant in promoting the green economy in SSA.

Turkey’s Sub-imperialism in Sub-Saharan Africa

2021 ◽  
pp. 048661342110039
Author(s):  
Gönenç Uysal
Keyword(s):  
Foreign Policy ◽  
Economic Crisis ◽  
Jel Classification ◽  
Sub Saharan Africa ◽  
Gulf Countries ◽  
Political Roles ◽  
The Face ◽  
Sub Saharan ◽  
Military Relations ◽  
Emerging Powers

The growing economic and political roles of the so-called emerging powers in sub-Saharan Africa have attracted particular attention following the apparent decline of Western powers in the face of the global economic crisis of 2007–2008. The AKP’s “proactive” foreign policy has manifested Turkey’s burgeoning role in the region. This paper draws upon Marxism to explore the diffusion of Turkish capital and the enhancement of military relations in the region in harmony and in contradistinction with Western and Gulf countries. It discusses the AKP’s proactive foreign policy vis-à-vis sub-Saharan Africa as a particular sociohistorical form of sub-imperialism that is characterized by and reproduces economic and geopolitical rivalries and alliances among Turkey and Western and Gulf countries. JEL Classification: F5, P1, O1

Foreign capital inflows and economic growth: the experience of low-income countries in Sub Saharan Africa

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Atif Awad
Keyword(s):  
Low Income ◽  
Foreign Capital ◽  
Ordinary Least Squares ◽  
Capital Inflows ◽  
Sub Saharan Africa ◽  
Low Income Countries ◽  
Content Type ◽  
Long Run ◽  
Foreign Capital Inflows ◽  
The Impact

Purpose This paper aims to investigate the long-run impact of selected foreign capital inflows, including aid, remittances, foreign direct investment (FDI), trade and debt, on the economic growth of 21 low-income countries in the Sub Saharan Africa (SSA) region, during the period 1990–2018. Design/methodology/approach To obtain this objective and for robust analysis, a parametric approach, which was dynamic ordinary least squares, and a non-parametric technique, which was fully modified ordinary least squares, were used. Findings The results of both models confirmed that, in the long run, trade and aid affected the growth rate of the per capita income in these countries in a positive way. However, external debt seemed to have an adverse influence on such growth. Originality/value First, this is the initial study that has addressed this matter across a homogenous group of countries in the SSA region. Second, while most of the previous studies regarding capital inflows into the SSA region have focused on the impact of only one or two aspects of such foreign capital inflows on growth, the present study, instead, examined the impact of five types of foreign capital inflows (aid, remittances, FDI, trade and debt).

scholarly journals Foreign Capital Inflows and Growth of Employment In India: An Empirical Evidence from Public and Private Sector

2016 ◽  
Vol 8 (2) ◽  
pp. 189
Author(s):  
Narender Khatodia ◽  
Raj S. Dhankar
Keyword(s):  
Foreign Direct Investment ◽  
Private Sector ◽  
Direct Investment ◽  
Foreign Capital ◽  
Positive Impact ◽  
Capital Inflows ◽  
Public And Private ◽  
Indian Economy ◽  
Foreign Capital Inflows ◽  
Public And Private Sector

The role of foreign capital in economic growth has been a burning topic of debate in countries world over including India. It is not possible for a developing country like India to grow without sufficient foreign capital inflow, technology and employment generation. The Indian government has taken many initiatives to attract foreign investment to boost the Indian economy since the liberalization process started in 1991. As a result, India has received Foreign Direct Investment (FDI) to the tune of US $ 380215 million by the end of June 2015. This study has assessed the growth of employment in public and private sector by the flow of foreign capital, comprising of Foreign Direct Investment, Foreign Portfolio Investment (FPI), External Commercial Borrowings (ECBs), and NRI Deposits in India during the period 1991 to 2012. The study has also analyzed the trends of employment in public and private sectors of Indian economy. We find that overall foreign capital inflows, except for the FPI and NRI deposits, have a significant positive impact on the growth of private sector employment.

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