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The Effect of China’s investment on the Business Environment and Economic Growth of Sub-Saharan Africa in perspective of Belt and Road Initiative Weldegebriel Abrha Hagoss & Xia Youfu

The Effect of China’s investment on the Business Environment and Economic Growth of Sub-Saharan Africa in perspective of Belt and Road Initiative

Author (s)

Weldegebriel Abrha Hagoss & Xia Youfu

Abstract

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This study was conducted to analyze the effect of China’s investment on the business environment and Economic growth of Sub-Saharan Africa countries in the perspective of BRI. The study used a neoclassical growth of Solow-type growth model and panel data analysis from the period of 2003 to 2018 on 43 SSA countries for the investment. Two panel regressions were estimated using time and country fixed effects through the fixed effect study result showed that the Chinese investment in the perspective of BRI has positive and statically significant effect on the economic growth and business environment of Sub-Saharan African countries. Which the Chinese investment studied in SSA countries is not a threat and normalized the negative attitude of some western researchers about Sino-Africa. China should have to revise the policy of investment in all countries in the region. Before Chinese FDI flow to the region it should have to study the environment for investment, business, policy and need of the countries. Chinese FDI should have assurance new knowledge, capital and infrastructure in the SSA countries to develop their business policy towards BRI. Besides, there is luck of full data and information of the Chinese FDI to SSA which has a limits research and complete analysis to help policy making with difficult measuring because of all each country has different resources, political systems and histories which has a lack of a uniform and clear model does not all variables might exact influence to the economic growth. Finally, it has an advantage to SSA countries and it will help for the future base of Sino-Africa BRI research and emphasized both relationships.

 Keywords: China, SSA, FDI, Economic Growth, BRI.

 

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Title: The Effect of China’s investment on the Business Environment and Economic Growth of Sub-Saharan Africa in perspective of Belt and Road Initiative
Author: Weldegebriel Abrha Hagoss & Xia Youfu
Journal Name: International Journal of Science and Business
Website: ijsab.com
ISSN: ISSN 2520-4750 (Online), ISSN 2521-3040 (Print)
DOI: https://doi.org/10.5281/zenodo.4934789
Media: Online
Volume: 5
Issue: 8
Acceptance Date: 10/06/2021
Date of Publication: 12/06/2021
PDF URL: https://ijsab.com/wp-content/uploads/790.pdf
Free download: Available
Page: 161-182
First Page: 161
Last Page: 182
Paper Type: Research paper
Current Status: Published

 

Cite This Article:

Weldegebriel Abrha Hagoss & Xia Youfu (2021). The Effect of China’s investment on the Business Environment and Economic Growth of Sub-Saharan Africa in perspective of Belt and Road Initiative. International Journal of Science and Business, 5(8), 161-182. doi: https://doi.org/ 10.5281/zenodo.4934789

Retrieved from https://ijsab.com/wp-content/uploads/790.pdf

 

About Author (s)

Weldegebriel Abrha Hagoss  (corresponding author), Business School, University of International Business and Economics (UIBE), Chaoyang District, Beijing, P.R. China 100029. Email: weldegebrielabraha@gmail.com, DE201665026

Xia Youfu, International trade and industrial economics, University of International Business and Economics, Chaoyang District, Beijing, P.R. China 100029. Email: youfuxia@china.com.

 

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DOI: https://doi.org/10.5281/zenodo.4934789

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Effect of Determinants of Entrepreneurial Innovation on Businesses Innovation Capacity in Sub-Saharan Africa Odhiambo Norbert Omuga, Robert Moracha Ogeto & Xiongying Niu

Effect of Determinants of Entrepreneurial Innovation on Businesses Innovation Capacity in Sub-Saharan Africa

Author (s)

Odhiambo Norbert Omuga, Robert Moracha Ogeto & Xiongying Niu

Abstract

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Global and local challenges and changes in the structure of knowledge production and usage, have led to very many different types of innovations. Thus, recognizing and classifying such innovations is more complex, fragmented, and geographically dispersed academic and social venture. This study provides a quantitative longitudinal study of the determinants of innovation, their role in entrepreneurship innovation capacity and how they collectively add value to economic growth in sub-Saharan Africa. The study used fixed effects with country dummies in the analysis where Stata software was used. The results generated are expected to use in enabling both other researchers and practitioners to navigate the complex web of innovation definitions and typologies and they collectively impact on economic growth in the poor world. The results indicated that the extent of staff training, brain drain, absence of excessive bureaucracy and red tape, intellectual property protection, venture capital availability and intensity of local competition among firms were positively and significantly correlated with entrepreneurial innovation capacity in SSA. On the other hand, government procurement of advanced technologies was negatively and significantly correlated with entrepreneurial innovation capacity in SSA. It is recommended that respective countries should put in mechanisms to capitalize from the positive benefits of brain drain, absence of excessive bureaucracy and red tape, venture capital availability, intensity of local competition among firms and tertiary education gross enrolment on the economy. This could be through increased investments in tertiary institutions and reduction of bureaucracy and corruption that will not only increase high quality production through increased labour productivity, but will also foster fair competition in the markets. The governments should also increase mechanisms that facilitate increased savings for investment and where possible adopt strategies that will encourage increased inflow of foreign direct investment.

 Keywords: Innovation Capacity, Entrepreneurial Innovation, FDI, Labour Force Participation Rate, Red Tape, Sub-Saharan Africa.

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Title: Effect of Determinants of Entrepreneurial Innovation on Businesses Innovation Capacity in Sub-Saharan Africa
Author: Odhiambo Norbert Omuga, Robert Moracha Ogeto & Xiongying Niu
Journal Name: International Journal of Science and Business
Website: ijsab.com
ISSN: ISSN 2520-4750 (Online), ISSN 2521-3040 (Print)
DOI: https://doi.org/10.5281/zenodo.4596907
Media: Online
Volume: 5
Issue: 5
Acceptance Date: 07/03/2021
Date of Publication: 11/03/2021
PDF URL: https://ijsab.com/wp-content/uploads/722.pdf
Free download: Available
Page: 8-21
First Page: 8
Last Page: 21
Paper Type: Research Paper
Current Status: Published

 

Cite This Article:

Odhiambo Norbert Omuga, Robert Moracha Ogeto & Xiongying Niu (2021). Effect of Determinants of Entrepreneurial Innovation on Businesses Innovation Capacity in Sub-Saharan Africa. International Journal of Science and Business, 5(5), 8-21. doi: https://doi.org/ 10.5281/zenodo.4596907

Retrieved from https://ijsab.com/wp-content/uploads/722.pdf

 

About Author (s)

Odhiambo Norbert Omuga (corresponding author), Business school, University of International Business and Economics, Chaoyang District, Beijing, P.R. China 100029. Email: norbertomuga@yahoo.com

Robert Moracha Ogeto, Business school, University of International Business and Economics, Chaoyang District, Beijing, P.R. China 100029. Email:

Professor Xiongying Niu, Business school, University of International Business and Economics, Chaoyang District, Beijing, P.R. China 100029.

 

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DOI: https://doi.org/10.5281/zenodo.4596907

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Impacts of Inflation and Exchange Rate on Foreign Direct Investment in Bangladesh Muhammad Mahmud Mostafa

Impacts of Inflation and Exchange Rate on Foreign Direct Investment in Bangladesh

Author (s)

Muhammad Mahmud Mostafa

Abstract

The objective of this study is to investigate the impacts inflation and exchange rate on foreign direct investment (FDI) in Bangladesh. To meet the purpose of the study, time series data on dependent and independent variables are collected from various secondary sources covering the period 1980 to 2017. For estimation purpose the study employs different econometric techniques such as Augmented Dickey-Fuller (ADF) test, Johansen Co-integration Test, and Vector Error Correction Model (VECM). Apart from these, various diagnostic tests have been applied to evaluate the goodness-of-fit of the model. Results of the study reveal that there exists a long-run relationship between dependent and independent variables. Inflation rate is found to have a significant negative impact on FDI in the long-run but it is insignificant in the short-run. The results also show that exchange rate has a significant positive relationship with FDI both in the long-run and short-run. That is, depreciation of Bangladeshi taka against US dollar induces FDI flows in Bangladesh. Therefore, in order to increase the flow of FDI in Bangladesh, it is essential to take necessary steps to curb high inflation and to prevent the devaluation of oreign currencies against Bangladeshi taka.

 Keywords: FDI, Inflation Rate, Exchange Rate, Co-integration, ADF, VECM.

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Title: Impacts of Inflation and Exchange Rate on Foreign Direct Investment in Bangladesh
Author: Muhammad Mahmud Mostafa
Journal Name: International Journal of Science and Business
Website: ijsab.com
ISSN: ISSN 2520-4750 (Online), ISSN 2521-3040 (Print)
DOI: https://doi.org/10.5281/zenodo.4114319
Media: Online & Print
Volume: 4
Issue: 11
Acceptance Date: 16/10/2020
Date of Publication: 20/10/2020
PDF URL: https://ijsab.com/wp-content/uploads/610.pdf
Free download: Available
Page: 53-69
First Page: 53
Last Page: 69
Paper Type: Research Paper
Current Status: Published

Cite This Article:

Muhammad Mahmud Mostafa (2020). Impacts of Inflation and Exchange Rate on Foreign Direct Investment in Bangladesh. International Journal of Science and Business, 4(11), 53-69. doi: https://doi.org/10.5281/zenodo.4114319

Retrieved from https://ijsab.com/wp-content/uploads/610.pdf

 

About Author (s)

Muhammad Mahmud Mostafa, Assistant Professor (Economics), Officer on Special Duty, Directorate of Secondary and Higher Education, Bangladesh, Dhaka, and Ph.D. Fellow, Institute of Bangladesh Studies, University of Rajshahi. E-mail: mahmud.bcs@gmail.com.

 

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DOI: https://doi.org/10.5281/zenodo.4114319

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The Impact of FDI and Foreign Aid on the Economic Growth: Empirical Evidence from Sub-Saharan African Countries Afolabi Tunde Ahmed & Imran Ur Rahman

The Impact of FDI and Foreign Aid on the Economic Growth: Empirical Evidence from Sub-Saharan African Countries

Author (s)

Afolabi Tunde Ahmed & Imran Ur Rahman

Abstract

Many are the presumptions of the effect of Foreign aid on growth on one side and the effect of Foreign Direct investment (FDI) on the other side. Our research empirically examines the impact of FDI and Foreign Aid on economic growth of Sub-Saharan African countries. To do so, we answer three questions: What drives the economic growth in Sub-Saharan Africa? What are the impacts of FDI and Foreign Aid on economic growth? and which relationship does exist in one part between FDI and economic growth and the other part between Foreign Aid and economic growth? To tackle our objectives we formulated four hypotheses with Gravity model and Two Stages Generalized Method of Moment analysis. Our findings lead us to conclude: Firstly, three fundamental factors responsible for the economic growth: the country fundamentals (the population, the capital formation), the governance implication (governance effectiveness, Regulatory Quality), and the macro stabilities (Foreign Direct Investment, Foreign Aid, Trade) are responsible and the key factors for the growth in SSA. Secondly, FDI and Aid have a positive and highly significant effect on the GDP. Thirdly, FDI and Aid have short run relationship with the economic growth. And fourthly, our result fall in line with others which have found that domestic factors are vital in promoting the growth effects of FDI. Nevertheless, the findings of this study diverge from others in the literature studies. Even though other researches in the literature works hypothesize that FDI has no absolute positive effect on growth, this study finds that FDI plays a direct role in promoting growth.

Keywords: FDI, Foreign Aid, Economic Growth, Sub-Saharan Africa, Governance Effectiveness, Regulatory Quality.

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Title: The Impact of FDI and Foreign Aid on the Economic Growth: Empirical Evidence from Sub-Saharan African Countries
Author:

Afolabi Tunde Ahmed & Imran Ur Rahman

Journal Name: International Journal of Science and Business
Website: ijsab.com
ISSN: ISSN 2520-4750 (Online), ISSN 2521-3040 (Print)
DOI: https://doi.org/10.5281/zenodo.3870562
Media: Online
Volume: 4
Issue: 6
Acceptance Date: 17/05/2020
Date of Publication: 31/05/2020
PDF URL: https://ijsab.com/wp-content/uploads/554.pdf
Free download: Available
Page: 53-70
First Page: 53
Last Page: 70
Paper Type: Research Paper
Current Status: Published

Cite This Article:

Afolabi Tunde Ahmed & Imran Ur Rahman (2020). The Impact of FDI and Foreign Aid on the Economic Growth: Empirical Evidence from Sub-Saharan African Countries. International Journal of Science and Business, 4(6), 53-70. doi: https://doi.org/10.5281/zenodo.3870562

Retrieved from https://ijsab.com/wp-content/uploads/531.pdf

 

 

About Author (s)

Tunde Ahmed Afolabi, Ph.D. School of International Trade and Economics, University of International Business and Economics (UIBE), Beijing, China, sirdanielastro12@yahoo.com

Imran Ur Rahman, (Corresponding Author) Associate Professor, Ph.D., Center for Trans-Himalaya Studies, Leshan Normal University, Sichuan China, 2388018157@qq.com

 

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DOI: https://doi.org/10.5281/zenodo.3870562