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JOURNAL OF MANAGEMENT POLICY AND PRACTICE
Trade Openness, Infrastructure, FDI and Growth in
Sub-Saharan African Countries
Author(s): Abimbola Babatunde
Citation: Abimbola Babatunde, (2011) "Trade Openness, Infrastructure, FDI and Growth in Sub-Saharan African Countries" Journal of Management Policy and Practice, Vol. 12, Iss. 7, pp. 27 - 36
Article Type: Research paper
Publisher: North American Business Press
Abstract:
This study explores the relationship between trade openness, infrastructure, foreign direct investment
(FDI) and economic growth using a panel of forty two sub Saharan Africa (SSA) countries over the
period 1980-2003. The results show that FDI depends on trade openness and GDP per capita. Further
results show that the interaction between trade openness and infrastructure leads to a slight increase in
FDI inflows. The results also indicate that FDI has a positive and significant effect on growth. This study
will assist policy makers to further increase efforts towards trade openness and infrastructural
development to enhance the level of FDI inflow for sustainable growth.
