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The Role Of Exchange Rate Uncertainty And Political Risk On Foreign Direct Investment Into Africa, Blen Solomon

International Conference on African Development Archives

This study, examines the roles of macroeconomic uncertainty, political risk, as well as host country institutions, in affecting FDI inflows into African economies. The past few decades have witnessed a surge of FDI inflows to developing regions. However, FDI inflows to Africa still remain small when compared to other developing regions. What characteristics does Africa exhibit that deter FDI inflows into the region? Investor surveys show political instability, corruption and macroeconomic uncertainty to be strong deterrents of FDI inflows to Africa. However, there are very few studies in the literature that investigate rigorously the impact of macroeconomic uncertainty and political …