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Be Good to Thy Neighbors: A Spatial Analysis of Foreign Direct Investment and Economic Growth in Sub‐Saharan Africa

2 monthes ago   |   By The World Economy

Abstract
This paper employs a spatial dependency framework to examine intermediary roles played by trade, institutional quality, and natural resource endowment in determining direct and indirect effects of inbound foreign direct investment on economic growth. We develop a number of spatial mechanisms to assess how these intermediary factors limit and/or enhance the effect of FDI on economic growth. In particular, we test whether different levels of resource rents, severity of civil conflict, and openness to international trade are statistically different in attenuating direct and indirect...
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