Foreign direct investment determinants in Sub-Sahara Africa: A co-integration analysis

This study provides an empirical assessment of the factors that significantly influence the long-run transnational corporations' investment decision making process in Sub-Sahara Africa. The empirical evidence based on a co-integration analysis of 19 countries suggests that the most dominant long-run determinants of FDI in Sub-Sahara Africa are market growth, export-orientation policy and FDI liberalisation. These are followed by real exchange rates and market size. Bottom on the list is openness. However, the results for real wage rates and human capital are inconclusive.