This paper analyzes the determinants of Foreign Direct Investment (FDI) to developing countries and examines why Sub-Saharan Africa (SSA) has been re… - Elizabeth Asiedu
" "This paper analyzes the determinants of Foreign Direct Investment (FDI) to developing countries and examines why Sub-Saharan Africa (SSA) has been relatively unsuccessful in attracting FDI despite policy reform. The results indicate that the factors that drive FDI have a differential impact on FDI flows to SSA. Specifically, infrastructure development and a higher return on capital promote FDI to non-SSA countries. In contrast these factors have no effect on FDI to SSA. Openness to trade promotes FDI to both SSA and non-SSA countries, however, the marginal benefit from increased openness is less for SSA-suggesting that trade liberalization will generate more FDI to non-SSA countries than SSA countries. Another important finding is that there is an "adverse regional effect" for SSA: a country in SSA will receive less FDI by virtue of its geographical location. These results suggest that Africa is different!
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About Elizabeth Asiedu
Elizabeth Asiedu is a professor of economics at the University of Kansas. She has facilitated research that is centered around foreign aid, foreign directed investment (FDI), and gender. Elizabeth Asiedu is the founder of the Association for the Advancement of African Women (AAAWE).
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That in order to enable more women to benefit more from economic activity and participate in policy-making there is a need to look beyond primary education. Although gender parity in primary education has been nearly achieved in most countries, women and girls now need increased opportunities for secondary and tertiary education in order to occupy visible and powerful roles in the society. Currently, the gender gap remains wide between females and males in secondary and tertiary education.
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I recounted a recent story of my first time meeting former mentee, Frances Nakakawa, at a conference in Finland after which she became mentee and Director of AAAWE Uganda. As a single mother of three in Uganda, she had to make the difficult decision of sending her children to a boarding school to balance her work, studies, and caring for her children. And even after placing her children in private school, the distance, worry, and longing to see them was often a distraction during her studies.
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