Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/64232
Authors: 
Ndikumana, Leonce
Verick, Sher
Year of Publication: 
2007
Series/Report no.: 
Working Paper, University of Massachusetts, Department of Economics 2007-13
Abstract: 
Despite the recent increase in foreign direct investment (FDI) to African countries, these resources have not had a meaningful impact on economic development because of limited effects on domestic factor markets, especially domestic investment and employment. In this context, this study analyses the two-way linkages between FDI and domestic investment in Sub-Saharan Africa. The results suggest that firstly, FDI crowds in domestic investment, and secondly, countries will gain much from measures aimed at improving the domestic investment climate. Moreover, there are alternatives to resource endowments as a means of attracting foreign investment to nonresource rich countries.
Subjects: 
FDI
private investment
public investment
Africa
JEL: 
E22
F21
F23
Document Type: 
Working Paper

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