The Impact of Macroeconomic Indicators on Foreign Direct Investment: Evidence from Selected Sub - Sahara African Countries

Umaru Musa; Ugeh; Richard Angioha; Ntah; Stella Maris C; Alfa Charles Achu

doi:10.56201/jbae.vol.11.no9.2025.pg110.119

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The Impact of Macroeconomic Indicators on Foreign Direct Investment: Evidence from Selected Sub - Sahara African Countries

Umaru Musa, Ugeh, Richard Angioha, Ntah, Stella Maris C, Alfa Charles Achu

Abstract

This study examined the impact of macroeconomic indicator on foreign direct investment: Evidence from Selected Sub – Sahara African Countries. The annual time series data was collected from world development indicator, covering 9 latest years span from 2016 to 2024 were used. The expost factor research design was used for this work. The study employed the econometric estimation technique of generalized method of moment (GMM) was used for the analysis, adopting annual data method of analysis. the coefficient of employment is negative and statistically insignificant, implying a negative and insignificant relationship between employment and economic development in Nigeria. The results indicate weak macroeconomic indicator and economic development in Nigeria, because a 1 percent increase in the employment lead to result to 8.34 percent decrease in an investment, vice-versa. This result does not confirm with the economic a priori expectation because more employment should imply strong relationship between macroeconomic indicator and foreign direct investment but weak reflects poor conducive atmosphere for the foreign investor to patronize and invest into the economic. In Contrast, coefficient of GDP 2.730 is strongly positive and statistically insignificant. This result is consistent with a priori economic expectation showing that a 1 percent increases in gross domestic product resulting 2.730 increase in an investment, ceteris paribus. The result is aligned with theory of public investment promote infrastructure and economic development in Sub – Sahara African Countries. Promote Macroeconomic Stability: Governments in Sub-Saharan Africa should strengthen monetary and fiscal policies to ensure exchange rate stability, control inflation, and maintain low and predictable interest rates to foster investor confidence. Encourage Domestic Savings and Investment: Policies that promote financial inclusion, encourage household savings, an

References

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The Impact of Macroeconomic Indicators on Foreign Direct Investment: Evidence from Selected Sub - Sahara African Countries

Abstract

References

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