文章基本信息

标题：Demand Side Factors Affecting the Inflow of Foreign Direct Investment to African Countries: Does Capital Market Matter?
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作者：Zenegnaw Abiy Hailu
期刊名称：International Journal of Business and Management
印刷版ISSN：1833-3850
电子版ISSN：1833-8119
出版年度：2010
卷号：5
期号：5
页码：104
DOI：10.5539/ijbm.v5n5p104
出版社：Canadian Center of Science and Education
摘要：This paper aims at providing empirical analysis of the demand side determinants of the inflow of Foreign Direct
Investment to African nations, with particular emphasis on stock market availability. Due to data heterogeneity,
non-continuity and because the Hausman test favors it, cross section fixed effect Least Square Dummy Variable
(LSDV) estimation technique is used. Natural resource, labor quality, trade openness, market accession and
infrastructure condition are found to have positive and significant effect. Availability of stock market has the
expected positive but insignificant effect. In search of possible explanation governments’ expenditure and
private domestic investment are added to the regression equation and are found to have positive effect, ruling out
the possibility of crowding out effect. Stock markets in Africa are not structured in such a way that they can
contribute to attract FDI and hence policy makers should restructure capital markets to get the most out of them.
The bottom line is, policy makers of those countries have a lot of demand side instruments under their discretion
to attract FDI inflow.