Trade Openness, Infrastructure, FDI and Growth in Sub-Saharan African Countries

Abimbola Babatunde

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Global trade and economics International Business and FDI Economic Growth and Productivity

Abstract

This study explores the relationship between trade openness, infrastructure, foreign direct investment (FDI) and economic growth using a panel of forty two sub Saharan Africa (SSA) countries over the period 1980-2003. The results show that FDI depends on trade openness and GDP per capita. Further results show that the interaction between trade openness and infrastructure leads to a slight increase in FDI inflows. The results also indicate that FDI has a positive and significant effect on growth. This study will assist policy makers to further increase efforts towards trade openness and infrastructural development to enhance the level of FDI inflow for sustainable growth.

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References

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