GOVERNANCE QUALITY AND MULTINATIONAL INVESTMENT INFLOWS IN SUB-SAHARA AFRICA: SYSTEM GENERAL METHOD OF MOMENT (SGMM) APPROACH

GOVERNANCE QUALITY AND MULTINATIONAL INVESTMENT INFLOWS IN SUB-SAHARA AFRICA: SYSTEM GENERAL METHOD OF MOMENT (SGMM) APPROACH

Author by Dr. Babatunde Owolabi

Journal/Publisher: European Modern Journal

Volume/Edition: 46

Language: English

Pages: 16 - 29

Abstract

The sustainable development experienced by many advanced countries is predicated on gains from private investment inflows to such economies. However, the Sub-Saharan Africa (SSA) has not been able to harness such benefits.The study examined whether governance quality influence multinational investment inflow. The study utilized System GMM in investigating the relationship using total enumeration of 48 SSA countries for the period of 2004-2018 (15years). The results showed that quality of governance is relatively weak across SSA, as SSA countries score below average in the world governance index (WGI) vis-avi voice and accountability, governance effectiveness and political stability and absence of violence. The inferential result finds that governance quality dimensions individually shows diverse patterns (-0.802, p < 0> 0.05) but jointly exert significant impact on multinational investment inflow (24.260, p < 0>


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