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How Does Foreign Direct Investment (FDI) Contribute to the Economic Growth in Developing Countries? Evidence from The Gambia, Mali and Senegal
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.
2024 (English)Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

Numerous investigations have been carried out to find the effect of foreign direct investment (FDI) on economic growth. Several studies have been carried out in both developed and developing countries (Akinlo, 2004). The purpose of this study is to investigate the empirical relationship between FDI and per capita GDP growth of the developing countries of West Africa (Senegal, Mali and The Gambia) from 2005 to 2023. A static fixed panel model was used to estimate the impact of FDI inflows. Given the potential endogeneity of FDI with respect to economic growth, the study also employed a two-stage least square (2SLS) estimation method to ensure robust causal inference. The model consists of FDI, percentage working population, secondary school enrollment, literacy rate and trade openness. The results confirmed a statistically significant and positive effect of FDI on per capita GDP growth. The study concludes that FDI inflows can contribute to the economic growth in Sengal, Mali and The Gambia.

Place, publisher, year, edition, pages
2024.
National Category
Economics
Identifiers
URN: urn:nbn:se:umu:diva-229839OAI: oai:DiVA.org:umu-229839DiVA, id: diva2:1898875
Available from: 2024-09-18 Created: 2024-09-18 Last updated: 2024-09-18Bibliographically approved

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CiteExportLink to record
Permanent link

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Citation style
  • apa
  • ieee
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Language
  • de-DE
  • en-GB
  • en-US
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  • nn-NB
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  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
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