Determinants of Foreign Direct Investment Inflows in Southern African Development Community (SADC) Member Countries
Authors:
Khamis Hamad Ali, Suleiman Malik Faki & Salim Hamad Suleiman
Abstract
We examined the determinants of Foreign Direct Investment Inflows in SADC member countries. The study employed Pooled OLS as the main estimation method and using data from the period 1995–2016. Our results revealed that infrastructure, trade openness and market size are positive and significant determinants of FDI inflows in SADC Countries. Results support the previous theory like Hecksehel-Ohlin (1933) and eclectic paradigm or OLI framework developed by Dunning (1980). However, human capital has positive insignificant and inflation has negative significant with FDI inflows for the SADC member countries. Therefore, SADC countries should promote trade agreements to facilitate exportation which has linked with industrial sectors, In addition, SADC countries should reform investment policy to attract more foreign inflow into SADC countries in the long run. The availability and reliability of the good infrastructure of attract many investors to invest in the region.
Key words: Foreign Direct Investment (FDI), Determinants, SADC, foreign inflow, Pooled OLS.
| Title: | Determinants of Foreign Direct Investment Inflows in Southern African Development Community (SADC) Member Countries |
|---|---|
| Authors: |
Khamis Hamad Ali, Suleiman Malik Faki & Salim Hamad Suleiman |
| 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.1441190 |
| Media: | Online |
| Volume: | 2 |
| Issue: | 4 |
| Acceptance Date: | 30/09/2018 |
| Date of Publication: | 02/10/2018 |
| PDF URL: | https://ijsab.com/wp-content/uploads/280.pdf |
| Free download: | Available |
| Page: | 616-623 |
| First Page: | 616 |
| Last Page: | 623 |
| Current Status: | Published |
Cite This Article:
Khamis Hamad Ali, Suleiman Malik Faki & Salim Hamad Suleiman (2018). Determinants of Foreign Direct Investment Inflows in Southern African Development Community (SADC) Member Countries. International Journal of Science and Business, 2(4), 616-623. doi: https://doi.org/10.5281/zenodo.1441190
Retrieved from https://ijsab.com/wp-content/uploads/280.pdf
About Authors
Khamis Hamad Ali, (Corresponding Author), PhD Candidate, School of International Trade and Economics, University of International Business and Economics, China
Suleiman Malik Faki, PhD Candidate, School of International Trade and Economics, University of International Business and Economics, China
Salim Hamad Suleiman, School of Economics, Capital University of Economics and Business, China
DOI: https://doi.org/10.5281/zenodo.1441190