Determinants of FDI Inflows to African Countries: A Panel Data Analysis
The study examines the key determinants of FDI inflows to African countries. Information is based on various reports and literature. The study finds that governance is positively related to FDI inflows. Other important determinants are, political regimes, population size, level of industrialization, and aid received per capita. However, the level of government involvement in the economy as provided by government consumption as a percentage of GDP is negatively related to FDI inflows.