School-wide publications

Permanent URI for this collectionhttps://dspace.njala.edu.sl/handle/20.500.144402/177

Browse

Filters

2024 - 20262

Advanced Search

Filter by

Settings

Start date: 1970Subject: search.filters.subject.foreign direct investment

Search Results

Now showing 1 - 2 of 2
  • No Thumbnail Available
    Item
    THE DETERMINANTS AND IMPACT OF FOREIGN DIRECT INVESTMENT ON THE ECONOMIC GROWTH OF SIERRA LEONE
    (Open Access Publishing Group, 2024-05-20) Abu, Abdul-Majid
    This article aims to examine the factors that influence foreign direct investment (FDI) and its effects on Sierra Leone's economic expansion. Understanding the elements that draw foreign direct investment (FDI) and its overall effects on the recipient country's economy is crucial as FDI has long been acknowledged as a driver for economic development in developing nations. This study used a mixed-methods approach to examine the factors influencing foreign direct investment (FDI) in Sierra Leone by analyzing both qualitative and quantitative data. Interviews with important stakeholders, including government officials, foreign investors, and industry experts, are used to analyze factors such as political stability, institutional quality, market size, natural resources, and infrastructure. Secondary data are statistically analyzed to determine the importance of these determinants. In addition, the study evaluates how FDI affects Sierra Leone's economic expansion. Analyzing macroeconomic data like GDP growth, employment rates, trade patterns, and technology transfer are necessary for this research. The research offers a thorough understanding of the direct and indirect effects of FDI on the nation's economy by utilizing both descriptive and econometric methodologies. The results of this study have added to the body of information already available on foreign direct investment (FDI) and its effects on economic growth in developing nations, with a particular emphasis on Sierra Leone. Policymakers, government organizations, and investors will be able to create focused strategies to draw in and maximize the advantages of FDI for sustainable economic development with the help of the results, which offers insightful information. JEL: F21, F23, O55, O11, C83, C18, P48 Article visualizations:
  • Thumbnail Image
    Item
    Foreign Direct Investment and Private Sector Development in Sierra Leone: Examining the Moderating Roles of Financial Development and Institutional Quality
    (Springer Science and Business Media LLC, 2026-09-21) Makieu, Peter
    This study examines the long-run and short-run relationship between foreign direct investment (FDI) and private sector development in Sierra Leone for the period 1996–2023. The dependent variable is domestic credit to the private sector as a share of gross domestic product (GDP), which is considered as a proxy for private sector development. The study examines the moderating effect of institutional quality, proxied by a composite index of World Governance Indicators. This index is on the effect of FDI on private sector development. Annual data from the World Bank World Development Indicators and World Governance Indicators are used to conduct the analysis using the autoregressive distributed lag (ARDL) bounds testing framework. Robustness estimators are fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) and short run dynamics are captured by an error correction model (ECM). The autoregressive distributed lag (ARDL) bounds F-statistic of 18.82 confirms the cointegration. Long-run estimates indicate that foreign direct investment (FDI) has a positive and significant impact on private sector development across all estimators. The interaction term between foreign direct investment (FDI) and institutional quality is positive and significant in all specifications. This suggests that improvements in governance enhance foreign direct investment's contribution to private sector development. The error correction term of − 0.346 (P = 0.01) implies that deviations from long-run equilibrium are corrected at 34.6% per annum. Results are robust to the exclusion of the Ebola shock period and to the decomposition of the governance index into its individual governance pillars. The results suggest that investment promotion and institutional reform are complementary policy priorities in post-conflict economies.