IMPACT OF FOREIGN DIRECT INVESTMENT INFLOW ON ECONOMIC GROWTH OF SUB-SAHARAN AFRICAN COUNTRIES
Keywords:
FDI inflow, Economic growth, Sub-Saharan Africa.Abstract
This study examines the impact of FDI Inflow and Economic Growth of Sub-Saharan African
Countries over the period 1981–2021. The objective of the study is to examine the impact of
foreign direct investment inflow on economic growth of Sub-Saharan African countries. To
achieve these objectives, Panel Autoregressive Distributed Lag (ARDL) was used. The results
revealed that FDI and have a positive and significant long run impact on economic growth in
sub-Saharan African countries. The short-run country-wise result revealed that FDI is
positively related to economic in all the selected countries. The study therefore recommended
that SSA countries should formulate more FDI-led policies and structural reforms that would
encourage the openness of their economy in order attract more FDI and promote larger
economic growth.
