The mediation effects of import on FDI and GDP in Sub-Sahara African countries

Etude Scientifique , 2020 , 19 Pages

Gestion d'entreprise - Commerce et Distribution

This study contributes to the empirical literature by investigating the mediation effects of import (IMP) in the linkages between inflows of foreign direct investment (FDI), and gross domestic product (GDP) for Sub-Sahara African Countries (SSA). The purpose of this study is to investigate how FDI contributes directly and indirectly to gross domestic product (GDP) through IMP. The FDI- IMP –GDP nexus has been neglected by researchers and policymakers. Commonly used methods in various publications analyzed the relationship among two variables without considering mediator variable. The study uses Baron and Kenny method, Bootstrap procedure, Sobel test to perform mediation analysis, and test the significance of the indirect effect respectively. Using data for annual 2018 for 39 SSA countries, the study finds a partial mediation of import in the relationship between FDI and GDP. The study demonstrates that effect of FDI on GDP is carried by increasing IMP. It is therefore recommended that SSA countries should stimulate FDI to bring new technology needed to increase exports, and gross domestic product through international trade. However, imports should be controlled to give priority in use of domestic goods and services.

Table of content

1. Introduction

2. Literature Review

3. Methodology

4. Research Results
4.1. Descriptive statistics
4.2. Mediation Analysis Result

5. Result discussion and conclusion
5.1. Result discussion
5.2. Conclusion

6. Reference

• Auteur: Antoine Niyungeko (Auteur)
• Année de publication: 2020
• Pages: 19
• N° de catalogue: V935557
• ISBN (ebook): 9783346265968
• ISBN (Livre): 9783346265975
• Langue: anglais
• mots-clé: Foreign Direct Investment Inflows, Import, Gross Domestic Product, Mediation