scholarly journals The Effect of IFRS Adoption on Foreign Direct Investment in Africa

2020 ◽  
Vol 5 (2) ◽  
pp. 117-126
Author(s):  
Alhassan Musah ◽  
Eunice Adjei ◽  
Ibrahim Anyass Ahmed
Keyword(s):  
Foreign Direct Investment ◽  
Population Growth ◽  
Financial Reporting ◽  
Open Economy ◽  
Direct Investment ◽  
Government Debt ◽  
African Countries ◽  
Fdi Inflows ◽  
Ifrs Adoption

Adoption of International Financial Reporting Standards (IFRS) is supposed to help enhance comparability of financial statement, improve the quality of financial reporting and accounting information of businesses in a country. This is expected to help improve Foreign Direct Investment (FDI) in the adopting countries. This study examined the effect of IFRS adoption on FDI inflows in Africa. Unlike previous studies that sample both adopting and non-adopting countries, this study sampled only Africa countries that have adopted IFRS to determine whether the adoption has improved FDI inflows. To achieve this objective, 20 African countries that have adopted IFRS were sampled covering a period 1980 to 2015. Data was sourced from The World Bank financial and Economic Data. Control variables such as GDP growth, openness of the economy, government debt and population growth were included in the model. The correlation and regression analysis showed that IFRS adoption has a positive and significant influence on FDI inflows in Africa. On the other hand, open economy, government debt and population growth had a positive and significant association with FDI. Overall, the results show that African countries that want to improve FDI inflows must improve the quality of their reporting environment by adopting IFRS.

scholarly journals Book Review of “India’s Recent Inward Foreign Direct Investment: An Assessment”

2019 ◽  
Vol 9 (1) ◽  
pp. 117-118
Author(s):  
Beena PL
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Comparative Perspective ◽  
Fdi Inflows ◽  
Inward Foreign Direct Investment

This book is focused on analysing the limitation of the existing Foreign Direct Investment (FDI) statistics in India. The trends, composition and quality of FDI inflows in India after the initiation of ‘Make in India’ (MII) policy are critically analysed. This is done with a comparative perspective on the nature and quality of FDI since 1990.   

scholarly journals Trade openness and foreign direct investment in Africa

2014 ◽  
Vol 9 (3) ◽  
pp. 355-370 ◽  
Author(s):  
T Kandiero ◽  
M Chitiga
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Trade Openness ◽  
Empirical Work ◽  
African Countries ◽  
Fdi Inflows ◽  
Services Sector ◽  
Openness To Trade ◽  
The Impact ◽  
Poor Infrastructure

Africa’s share of foreign direct investment (FDI) has lagged behind other regions in the world, despite a sharp increase in FDI inflows to the region in 2001. Factors contributing to this circumstance include perceptions of high corruption, weak governance and poor infrastructure. The motivation of this paper is to investigate the impact of openness to trade on the FDI inflow to Africa. In addition to economy-wide trade openness, we also analyse the impact on FDI of openness in manufactured goods, primary commodities and services. The empirical work uses cross-country data from selected African countries observed over four periods: 1980-1985, 1985-1990, 1990- 1995 and 1995-2001. We find that the FDI to GDP ratio responds well to increased openness in the whole economy and in the services sector in particular.

scholarly journals Foreign direct investment and pollution havens: evidence from African countries

2020 ◽  
Vol 7 (12) ◽  
pp. 244-252
Author(s):  
SAID GHARNIT ◽  
Mohamed Bouzahzah ◽  
Jihad Ait Soussane
Keyword(s):  
Carbon Dioxide ◽  
Foreign Direct Investment ◽  
Carbon Dioxide Emissions ◽  
Direct Investment ◽  
Least Square ◽  
Pollution Haven Hypothesis ◽  
African Countries ◽  
Fdi Inflows ◽  
Ordinary Least Square ◽  
Long Run

This study examines the relationship between foreign direct investment (FDI) inflows and carbon dioxide emissions (CE) in order to investigate the validity of the pollution haven hypothesis for 54 African countries, using cointegration approach with dynamic panel data over the period 1960-2018. Based on the panel cointegration analysis, it was concluded that the variables are cointegrated. Moreover, the Dynamic Ordinary Least Square (DOLS) and Fully Modified Ordinary Least Square (FMOLS) results showed that foreign direct investment inflows have a long-run positive relationship with carbon dioxide emissions. Furthermore, according to Granger-Engle causality test results, FDI inflows and carbon dioxide emissions have a positive causal relationship, for both short-run and long-run. Thus, the results of this study validate the pollution haven hypothesis in the African countries. Nevertheless, it is recommended to keep attracting foreign direct investment inflows alongside of implementing mechanisms and instruments for reducing the CO2 emissions under strong environmental policies.

EVIDENCE ON TWO-WAY RELATIONSHIPS BETWEEN FOREIGN DIRECT INVESTMENT INFLOWS AND COUNTRY-LEVEL INDIVIDUAL GOVERNANCE INDICATORS

2013 ◽  
Vol 58 (02) ◽  
pp. 1350013 ◽  
Author(s):  
OMAR AL FAROOQUE ◽  
SUBBA REDDY YARRAM
Keyword(s):  
Foreign Direct Investment ◽  
Financial Reporting ◽  
Direct Investment ◽  
Business Environment ◽  
Policy Implications ◽  
Legal Origin ◽  
Global Business ◽  
Fdi Inflows ◽  
Country Level ◽  
Governance Indicators

This paper investigates the interactions between foreign direct investment (FDI) and country-level individual governance indicators for a sample of 173 countries from 1996 to 2007, and also the effect of legal origin, international financial reporting standards (IFRS) and ownership diffusion on them. We find evidence of positively significant two-way relationships between each of the six individual governance indicators and lagged FDI inflows scaled by lagged GDP to confirm that governance is a function of FDI inflows and vice-versa. The overall interpretation of the results is that FDI inflows, IFRS, ownership diffusion and legal framework of a country 'matter' for macro-level governance in a competitive global business environment while FDI inflows are dependent on individual governance indicators and other macro-economic variables to a large extent. Both IFRS and legal origin have no direct link to FDI inflow. These findings have policy implications for individual governments and international donor organizations to undertake tenable actions for the improvement of country-level individual governance indicators to attract more FDI inflow.

scholarly journals Slow Growth of Foreign Direct Investment in Central African Republic

2017 ◽  
Vol 18 (6) ◽  
pp. 1435-1446 ◽  
Author(s):  
Yapatake Kossele Thales Pacific
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Central African Republic ◽  
Electricity Production ◽  
African Countries ◽  
Speed Of Adjustment ◽  
Long Run ◽  
Domestic Credit ◽  
Short Run

Large amounts of foreign direct investment (FDI) has been attracted by many African countries. Yet, Central African Republic is by far less attractive in the perspective of potential investors. The aim of this article is to investigate the slow inflows and growth of FDI in the country. In the short and long run, we found out that the gross domestic product growth, the domestic credit to private sector, the electricity production and the quality of public administration are not significant. The error correction mechanism is significant at 0.05 which demonstrates that the speed of adjustment of the model from short run to long run is about 46 per cent. It is very important for the Central African Republic to renovate the national electricity supply company by increasing the hydroelectric production.

scholarly journals Profiling sectoral risks of foreign direct investment (FDI) in Africa for the first decade of the 21st century

2017 ◽  
Vol 9 (1) ◽  
pp. 153-173 ◽  
Author(s):  
Zahné Coetzee ◽  
Henri Bezuidenhout ◽  
Carike Claassen ◽  
Ewert Kleynhans
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Structural Equation ◽  
Equation Model ◽  
Vital Role ◽  
African Countries ◽  
Fdi Inflows ◽  
Government Effectiveness ◽  
The Relationship ◽  
Risk Pattern

Despite Africa’s strong foreign direct investment (FDI) performance since 2000, the majority of FDI inflows have been directed to a few selected countries. As investors face many risks when investing in developing countries, it is argued that risk perception plays a vital role in the FDI inflows into Africa. This article focuses on the relationship between risk and FDI. A structural equation model is used to analyse this relationship with a dataset of ten risk categories and FDI data from 42 African countries. The study focuses on four sectors, namely metals, automotive, communications and real estate. Overall, results indicate that government effectiveness and legal and regulatory risks produce the biggest concern for investors. The conclusion is that each sector’s risk pattern regarding FDI differs. The most important empirical results indicated that African countries should focus more on government effectiveness, stability and transparency to attract the levels of FDI required to stimulate economic growth.

scholarly journals An assessment on how China Foreign Direct Investment Policy (FDI) Stimulate Development in African Countries: the case of Tanzania

2016 ◽  
Vol 11 (3) ◽  
pp. 2763-2768
Author(s):  
AMRAN SAID SULEIMAN ◽  
Sahim Abdalla Juma
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Education Technology ◽  
Investment Strategy ◽  
Investment Policy ◽  
East African ◽  
African Countries ◽  
Fdi Inflows ◽  
Technology Market

In this paper we have reviewed a case study which assess how China Foreign Direct Investment Policy (FDI) Stimulate Development in African Countries: The Case of Tanzania. FDI significantly increase the domestic in Africa both in monetary terms and also increase the gross of domestic product (GDP). Furthermore, FDI is an approach of changes the experiences and skills in different sectors like technology, market, infrastructures, education etc. African countries remain as recipient of the FDI inflows but still the out flows are very low especially in East African countries (Tanzania is one among the East African Countries). Also suggest that it is the time now African leaders to rethink again about their investment strategy to ensure other sectors like education, technology and infrastructures. Thus, provides more room for investors in those particular areas. In addition to that, the leaders must change their economic policy to attract more investors to invest in different sectors.

scholarly journals Foreign Direct Investment and Tourism Development in Africa

2020 ◽  
Vol 25 (4) ◽  
pp. 395-408
Author(s):  
Ogechi Adeola ◽  
Nathaniel Boso ◽  
Ellis L. C. Osabutey ◽  
Olaniyi Evans
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Tourism Development ◽  
Political Stability ◽  
Annual Data ◽  
African Countries ◽  
Fdi Inflows ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run

This study examines the nexus between foreign direct investment (FDI) inflow and tourism development. Using annual data for 44 countries in Africa from 1995 to 2014, and three different specifications of panel autoregressive distributed lag model, the study investigates short-run and long-run dynamics between FDI and tourism development. The study finds a significant positive relationship and a bidirectional long-run causality between FDI inflows and tourism development. In addition, the results show a negative short-run relationship between exchange rate and tourism development. Furthermore, there is evidence that economic growth and political stability are important determinants of tourism development. A major policy implication for African countries is that creating a politically stable environment and sustaining a growing economy help attract FDI inflows to boost tourism development.

Sign in / Sign up

Export Citation Format

Share Document