Author

  • Alexander Maune

    • University of South Africa, Pretoria, South Africa
    • South Africa

Abstract

The topic regarding the impact of foreign direct investment net inflows, exports and domestic investment on economic growth has resulted in mixed research findings across the globe. Literature related to the above variables in five selected African countries drawn from the five sub-regions is critically reviewed in this article. Furthermore, an econometric analysis of these variables is done to ascertain their impact on economic growth. The findings are compared to previous findings in other studies. The researcher found similar results in some variables when compared to previous researches in other countries. The study found that the independent statistical variables significantly predicted gross domestic product, with F (3, 63) = 5.84, P > F 0.0014, R__2 = 0.2176, a djusted R__2 = 0.1804 and root mean squared error (RMSE) = 0.54976. The independent variables added significantly to the prediction of p < 0.05. The researcher challenges the notion that the impact of foreign direct investment net inflows, exports and domestic investment on economic growth should always be positive and significant. This study provides a refreshed appreciation of the relationship between foreign direct investment net inflows, exports, domestic investment and economic growth in light of rapid socioeconomic changes in the sampled countries. The article also proposes some critical considerations regarding this relationship.

Keywords

References

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How to Cite

Maune, A. (2018). The Impact of FDI Inflows, Exports and Domestic Investment on Economic Growth in Africa. Journal of Economics and Behavioral Studies, 10(4(J), 152-164. https://doi.org/10.22610/jebs.v10i4(J).2415

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Section

Research Paper

Published in

Vol. 10 No. 4(J) (2018) Enterprise, Macroeconomics & Development in Africa View issue contents

Published

2018-09-14

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