This study aims identifying the mediation effect of export in the relationship between FDI and GDP in low and middle low-income African countries. The study uses correlation analysis, Baron and Kenny method, Bootstrap procedure and Sobel test to investigate the significance of the indirect effect.

The relationship between foreign direct investment (FDI) inflows, exports and economic growth as measured by gross domestic product (GDP) has been a global interest of academics and policy-makers, but research methods did not allow the characterization of the indirect mediating effects that exports have on that relationship. The result of the analysis shows a partial mediation of exports in the relationship between FDI and GDP. The study demonstrates the indirect effect caused by FDI through export. It is therefore recommended that low and middle low-income African countries should stimulate foreign direct investment to boost their exports, and gross domestic product. Additionally, these countries should find new ways of financing exports as FDI are predicted to fall due to the Covid-19 pandemic during 2020.

Excerpt

Inhaltsverzeichnis (Table of Contents)

Abstract
1. Introduction
2. Literature Review
- 2.1. Definition and Previous Findings
- 2.2. Previous Methodology
3. Methodology
4. Research Results
- 4.1. Descriptive statistics
- 4.2. Correlation Analysis
- 4.3. Mediation Analysis Result
5. Result Discussion and Conclusion
- 5.1. Results Interpretation
6. Conclusion
References

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This study aims to determine the mediating effect of exports on the relationship between foreign direct investment (FDI) inflows and gross domestic product (GDP) in low and low-middle-income African countries. It investigates whether exports mediate the relationship between FDI and GDP and tests the significance of the indirect effect. The central research question is: What are the direct and indirect effects of FDI on GDP in these countries?

The relationship between FDI, exports, and GDP in low and low-middle-income African countries.
The mediating role of exports in the FDI-GDP relationship.
Analysis of direct and indirect effects of FDI on GDP.
Policy implications for stimulating FDI and exports in African countries.
The impact of the Covid-19 pandemic on FDI and the need for alternative export financing.

Zusammenfassung der Kapitel (Chapter Summaries)

1. Introduction: This chapter introduces the study's focus on the relationship between foreign direct investment (FDI), exports, and economic growth (GDP) in low and low-middle-income African countries. It highlights the existing debate regarding the positive or negative impact of FDI on GDP, citing various studies with contrasting findings. The chapter emphasizes the gap in research concerning the mediating role of exports and poses the central research question of determining the direct and indirect effects of FDI on GDP in these countries. This sets the stage for the subsequent literature review and methodology sections.

2. Literature Review: This chapter reviews existing literature on the definitions of FDI, GDP, and exports, based on World Bank indicators. It presents a comprehensive overview of previous research on the relationship between FDI and economic growth, highlighting studies that show both positive and negative impacts of FDI in various contexts. The review emphasizes the limitations of previous studies, particularly their lack of attention to the mediating role of exports, thus justifying the current study's focus. The chapter lays the groundwork for the study's methodology by discussing the relevance of prior findings and the methodological gaps to be addressed.

Schlüsselwörter (Keywords)

Foreign Direct Investment Inflows, Exports, Gross Domestic Product, Mediation, low and middle low-income African countries, economic growth, Covid-19 pandemic.

Frequently Asked Questions: A Comprehensive Language Preview

What is the main research question of this study?

The central research question is: What are the direct and indirect effects of Foreign Direct Investment (FDI) on Gross Domestic Product (GDP) in low and low-middle-income African countries?

What are the key themes explored in this study?

The study explores the relationship between FDI, exports, and GDP in low and low-middle-income African countries. It focuses on the mediating role of exports in the FDI-GDP relationship, analyzing both direct and indirect effects. Additionally, it considers the policy implications for stimulating FDI and exports in these countries and the impact of the Covid-19 pandemic on FDI and the need for alternative export financing.

What is the study's methodology?

While the specific methodology isn't detailed in this preview, it mentions the use of descriptive statistics, correlation analysis, and mediation analysis to examine the relationships between FDI, exports, and GDP.

What are the key findings (as summarized in the preview)?

The preview does not present specific numerical results. However, it indicates that the study investigates the mediating effect of exports on the relationship between FDI inflows and GDP. The interpretation of the results and their implications are discussed in the conclusion.

What is included in the Literature Review chapter?

The Literature Review chapter defines FDI, GDP, and exports based on World Bank indicators. It reviews previous research on the FDI-economic growth relationship, highlighting both positive and negative impacts found in various studies. Critically, it addresses the gap in existing research regarding the mediating role of exports.

What does the chapter on Research Results cover?

This chapter presents the findings of the statistical analysis, including descriptive statistics, correlation analysis, and the results of the mediation analysis investigating the mediating role of exports in the FDI-GDP relationship.

What are the key variables in this study?

The key variables are Foreign Direct Investment (FDI) inflows, Exports, and Gross Domestic Product (GDP).

What is the scope of the study in terms of geographic location?

The study focuses on low and low-middle-income African countries.

What are the keywords associated with this study?