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Social and Behavioral Sciences Commons

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Economics

Western Michigan University

International Conference on African Development Archives

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FDI

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Full-Text Articles in Social and Behavioral Sciences

The Role Of Exchange Rate Uncertainty And Political Risk On Foreign Direct Investment Into Africa, Blen Solomon Aug 2007

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 …


Do Foreign Direct Investment And Foreign Aid Promote Good Governance In Africa?, Adugna Lemi, Blen Solomon, Sisay Asefa Aug 2007

Do Foreign Direct Investment And Foreign Aid Promote Good Governance In Africa?, Adugna Lemi, Blen Solomon, Sisay Asefa

International Conference on African Development Archives

The literature on the roles that governance/political and economic stability play to attract capital flows into African economies has been burgeoning. Good governance, liberalization, infrastructure, incentive packages have been regarded as cures to break the deadlock to reverse the economic plight, to attract inflow of capital and, in some cases, to reverse outflows of African economies. The flow of capital, however, has undesirable side effects on host economies’ working conditions, environmental standard, inequality, and culture, among others. These economic and social external or negative spillover effects are due to the phenomenon of “race-to-the-bottom” where companies invest in economies with lax …