Title:
Question of Threshold in the Triptych Quality of Institutions, FDI and Economic Growth in Sub-saharan Africa: An Estimation Using the GMM Method in a Two-step System.

Authors:
SILUE Drissa, Cote d'Ivoire

Abstract:

The objective of this study is to analyse the role of institutional quality in the relationship between FDI and economic growth in sub-Saharan Africa. To do this, we used annual from 30 sub-Saharan African countries covering the period 2000-2020. Using the Generalized Moment Method (GMM), the results reveal that FDI has positive effect on growth in sub-Saharan African. This effect becomes more pronounced when host countries have good institutional qualities. Furthermore, in terms of control variables, domestic investment has a positive effect on economic growth. Trade openness and inflation have no significant effect on economic growth in sub-Saharan African.

DOI: https://doi.org/10.51505/IJEBMR.2024.8504