2012•SSRN Electronic JournalOpen access

Foreign Direct Investment - Economic Growth Nexus: The Role of the Level of Financial Sector Development in Africa

Ibrahim D. Raheem, Mutiu Abimbola Oyinlola

Abstract

This study examines the relationship between foreign direct investment (FDI) and economic growth considering the influence of financial sector development (FSD). We empirically determine the threshold level of three FSD indicators that would ensure the positive association between FDI and growth once these threshold levels are exceeded. The policy implication of this study is that policies directed towards attracting FDI should go along with and not precede policies that aim at promoting FSD.

About this research paper

What this paper is about

Why it matters

OpenAlex reports 6 citations for this work. Citation counts describe recorded attention and do not establish research quality.

Key contribution

A contribution statement is not available in the OpenAlex record.

Method / approach

Method details are not available in the OpenAlex metadata.

Main findings

Findings are not separately available in the OpenAlex metadata.

Limitations

Limitations are not available in the OpenAlex metadata.

Applications

Application details are not available in the OpenAlex metadata.

Available abstract

Key concepts: Nexus (standard), Foreign direct investment, International economics, Financial sector development, Financial sector, Investment (military), Business, Economics