Abstract
This paper analyzes the impacts of physical infrastructure and human capital on FDI inflow in Sub-Saharan Africa (SSA). Towards this effect a panel data of 960 observations of 32 countries from 1975 to 2004 have been analyzed using alternative panel estimation methods. Accordingly, the study revealed that human capital and infrastructure are indeed the key determinants for enhancing inward FDI. However, the evidence shows that the level of human capital and infrastructure are below the threshold level in SSA to play a positive role in attracting FDI and materialize a structural change in the economy. Thus, investment on education and infrastructure should be taken as development priorities in SSA. Additionally, the study confirms that FDI is a complement not a threat to domestic investment/Iocal firms.
Recommended Citation
Mengistu, Alemu Aye
(2007)
"The Roles of Human Capital and Infrastructure on FDI Inflow: Empirical Evidence from Sub Saharan Africa,"
Journal of African Policy Studies: Vol. 13:
No.
2, Article 3.
Available at:
https://ecommons.udayton.edu/joaps/vol13/iss2/3