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Effect of Foreign Direct Investment on Economic Growth in Anglophone ECOWAS countries: Generalized Method of Moment (GMM) Approach

Authors: Lawali, Lukman;

Effect of Foreign Direct Investment on Economic Growth in Anglophone ECOWAS countries: Generalized Method of Moment (GMM) Approach

Abstract

This study explores the effect of foreign direct investment on economic growth in five Sub-Saharan African countries, specifically the Anglophone ECOWAS countries such as Gambia, Ghana, Liberia, Nigeria, and Sierra Leone, using the generalized method of moment (GMM) approach, descriptive statistics, and correlation matrix, for a panel data from 1984 to 2024. Specifically, the study analyzes the effect of foreign direct investment (FDI), trade balance (TRB), exchange. The correlation matrix results show that there is a positive correlation between foreign direct investment and economic growth, and the descriptive statistics results show that trade openness and real exchange rate have higher mean, maximum, and minimum values, as well as higher standard deviation, when compared to other variables. The findings highlight the necessity of implementing appropriate macroeconomic policies and institutional environment to maximize the growth-enhancing advantages of foreign direct investment in Sub-Saharan Africa.

Keywords

GDP; GMM Anglophone ECOWAS, Wirtschaftswachstum, Nigeria, Westafrika, Direktinvestition, Liberia, Ghana, economic growth, Sierra Leone, direct investment, foreign investment, West Africa, Gambia, Auslandsinvestition

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average