Using the threshold regression model, we examine the effects of Foreign Direct Investment (FDI), and the mediating role of FDI absorptive capacity, on economic growth in Sub-Saharan Africa. We find that the threshold level of FDI inflows per person is approximately US$ 44.67 per annum. For FDI...

This paper applies a two-step dynamic BBS-GMM panel estimation technique alongside with the Diebold and Yilmaz (2012) index variance decomposition approach. This was done to achieve conditional convergence in the growth equation and also to disaggregate the shock due to the epidemic prevalence....