JOURNAL OF APPLIED BUSINESS AND ECONOMICS
AGOA: Economic and Political Effects on FDI Flows Into Sub-Saharan Africa
Author(s): Osei Yeboah, Saleem Shaik, Michael Wuaku
Citation: Osei Yeboah, Saleem Shaik, Michael Wuaku, (2021) "AGOA: Economic and Political Effects on FDI Flows Into Sub-Saharan Africa" Journal of Applied Business and Economics, Vol. 23, Iss.5, pp. 258-267
Article Type: Research paper
Publisher: North American Business Press
Abstract:
Foreign Direct Investment (FDI) is widely considered as an important stimulus to the economic growth in the form of employment, technology transfer; and regional economic integration among others. This paper seeks to determine the effects of the Africa Growth and Opportunity Act (AGOA) on FDI flows into Sub-Saharan Africa. Using a modified gravity model, results suggests that per capita GDP and AGOA participation status positively influences FDI inflow into Sub-Saharan Africa while being a member of other RTAs (Other Regional Trade Agreements) hinder FDI net flow. Also, countries with generally better political stability index score have higher average FDI net flow.