IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT (IJEFM )

E-ISSN 2545-5966
P-ISSN 2695-1932
VOL. 2 NO. 2 2017

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Impact of Foreign Capital Inflow to the growth of the economies of Sub-Saharan Africa

Idris Isyaku Abdullahi (Ph.D) & Murtala Garba and Isah Magaji

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Abstract

This study provided an empirical analysis on the impact of foreign capital inflow to the growth of sub-saharan African countries for the period 2010-2015 using difference GMM. It was found that Foreign capital inflow adversely affects the growth of the sub-saharan Africa economies.The implication is that sub-Saharan African countries are not adequately accessing the foreign capital which mostly come inform of FDI resulting from insecurity as well as non- conducive business climate prevailing in the region, as a result of which the foreign capital inflow negatively affects their level of economic development instead of enhancing it. Keyword: Economic growth, GMM, FDI

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