Governance Quality Indicators And Foreign Direct Investment In Sub-Saharan African Countries

Abstract

This paper investigates the interaction between foreign direct investment (FDI) and governance quality indicators in Sub-Saharan African (SSA) from 1996-2022. A sample of 47 sub-Saharan countries were studied. Data was extracted from the World Development Indicators (WDI). The study employed panel data estimation techniques and the results suggest that a mixed relationship exists between governance indicators and FDI inflow to SSA countries. The study nuanced findings offer policymakers and stakeholders insights into the areas of governance that require attention to enhance the attractiveness of SSA for foreign direct investment. By and large, the findings have practical implications for policymakers aiming to promote economic development in SSA through the instrument of greater FDI attraction.