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.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Literature Review
- Methodology
- Descriptive statistics
- Mediation Analysis Result
- Research Results
- Result discussion
- Conclusion
- Reference
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This study aims to investigate the mediation effects of imports (IMP) in the relationship between foreign direct investment (FDI) and gross domestic product (GDP) in Sub-Saharan African countries. The study investigates how FDI contributes both directly and indirectly to GDP through IMP, a relationship often neglected by researchers and policymakers. The study explores the complex relationship between FDI, imports, and GDP, aiming to contribute to a more nuanced understanding of the role of FDI in economic growth.
- The impact of FDI on GDP in Sub-Saharan Africa.
- The role of imports as a mediator in the FDI-GDP relationship.
- The importance of understanding the indirect effects of FDI on economic growth.
- The implications of the findings for policymakers in Sub-Saharan Africa.
Zusammenfassung der Kapitel (Chapter Summaries)
The introduction discusses the understudied nature of the FDI-IMP-GDP nexus and the need for quantitative research in this area. It highlights the limitations of previous research that focused solely on direct effects of FDI, neglecting the crucial role of indirect effects. The chapter also contextualizes the study within the broader literature on FDI's impact on economic growth. The literature review provides a detailed examination of existing research on FDI, imports, and GDP, highlighting key findings and identifying gaps in the literature. The methodology section outlines the specific methods employed in the study, including the Baron and Kenny method, the Bootstrap procedure, and the Sobel test, used to perform mediation analysis and test the significance of the indirect effect.
Schlüsselwörter (Keywords)
The study focuses on key terms like foreign direct investment (FDI), imports (IMP), gross domestic product (GDP), mediation, and Sub-Saharan African countries. The study seeks to clarify the relationship between these variables and analyze the role of imports as a mediator in the relationship between FDI and GDP.
- Quote paper
- Antoine Niyungeko (Author), 2020, The mediation effects of import on FDI and GDP in Sub-Sahara African countries, Munich, GRIN Verlag, https://www.grin.com/document/935557
