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Do Policy and Institutional Variables Play a More Significant Role in Attracting Foreign Direct Investment to Eastern Africa than They Do in Other Regions of Sub-Saharan Africa?

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Authors
Na, Hyeseon
Issue Date
2018-08
Publisher
Graduate School of Public Administration, Seoul National University
Citation
Korean Journal of Policy Studies, Vol.33 No.2 pp. 41-51
Keywords
foreign direct investmentpolicy and institutional variableseastern Africa
Abstract
The paper aims to assess whether policy and institutional variables are significant factors in attracting foreign direct investment (FDI) to eastern Africa. The assessment is based on the determinants of FDI in a sample of 30 sub-Saharan African (SSA) countries between 2005 and 2016. Employing panel data methodology, I investigate whether policy and institutional variables play a more significant role in attracting FDI to eastern Africa than they do in other SSA countries. The results indicate that these variables are more significant factors for attracting FDI to eastern Africa than they are for the other SSA regions. The paper concludes that eastern Africas current FDI promotion policies are working. In particular, ensuring a stable macroeconomic situation and a favorable profit tax rate as well as building good institutions have proven to be good tools for attracting FDI to eastern Africa.
ISSN
1225-5017
Language
English
URI
https://hdl.handle.net/10371/142846
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Graduate School of Public Administration (행정대학원)Dept. of Public Administration (행정학과)Korean Journal of Policy Studies (정책논총, KJPS)Korean Journal of Policy Studies (정책논총) vol.33 no.1-3 (2018)
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