Foreign Direct Investment in Africa
Barbara Seedha* (Student, Honors College ), Lauren Maxwelt** (Instructor, Department of Economics, Finance, Insurance, Risk Management, College of Business University of Central Arkansas, Conway, Arkansas. ), Joseph Horton*** (Professor, Department of Economics, Finance, Insurance, Risk Management, Coiiege of Business University of Central Arkansas, Conway, Arkansas.)
Download Article | Published On 01/07/2005

Abstract

Most African countries are seeking Foreign Direct Investment (FDI), because of the contribution FDI can make to their economic development and integration into the world economy. If well managed, FDI can be a channel through which African countries stimulate and sustain their economic growth rates. It is important to identify factors that have the potential to either impede or induce FDI flows into host countries. It is also important to recognize the mixture of positive and negative effects FDI brings to a nation. This research evaluates ways African nations can maximize the effects of FDI and enhance the use of FDI in the development process. The paper is divided into 4 sections. Section 1 introduces the subject of FDI and presents an overview of its flows into Africa. Section 2 evaluates the current situation of FDI in Africa and the measures countries are adopting to increase the inflows of FDI. The risks and dangers that accompany FDI and the maximization of benefits are presented in sections 3 and 4.

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