Does FDI promote economic growth and development? Evidence from Latin America and Africa

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Periodical article

Title:	Does FDI promote economic growth and development? Evidence from Latin America and Africa
Author:	Hussen, Mohammed Seid
Year:	2014
Periodical:	Africanus: skakelblad van die Departement van Naturelle-Administrasie, Universiteit van Suid-Afrika = liaison journal of the Department of Native Administration, University of South Africa (ISSN 0304-615X)
Volume:	44
Issue:	1
Pages:	34-52
Language:	English
Geographic terms:	Africa Latin America
Subjects:	foreign investments economic development economic models
External link:	http://reference.sabinet.co.za/webx/access/electronic_journals/canus/canus_v44_n1_a4.pdf
Abstract:	This paper is an attempt to analyse and empirically estimate the impact of FDI on economic growth and human development of Africa and Latin American countries for the period 1985-2011. To this end we develop two equations: growth and human development. The findings, based on fixed effect panel regression, thus, suggest that FDI does not have a positive impact on economic growth but it has significant positive impact on human development. The author concludes that for FDI to be a noteworthy provider to economic growth, it is important to increase absorption capacity by improving the level of democracy, increasing and improving transport infrastructure and following appropriate economic policies. The results are found to be robust across approach, model specifications and statistical test. Bibliogr., notes, ref., sum. [Journal abstract]