Journal of
Economics and International Finance

  • Abbreviation: J. Econ. Int. Finance
  • Language: English
  • ISSN: 2006-9812
  • DOI: 10.5897/JEIF
  • Start Year: 2009
  • Published Articles: 363

Full Length Research Paper

Foreign direct investment - economic nexus: The role of the level of financial sector development in Africa

Ibrahim Dolapo RAHEEM and Mutiu Abimbola OYINLOLA*
Department of Economics, University of Ibadan, Ibadan, Nigeria.
Email: [email protected]

  •  Accepted: 14 November 2013
  •  Published: 13 December 2013

Abstract

This study examines the relationship between foreign direct investment (FDI) and economic growth considering the influence of financial sector development (FSD). We empirically determine the threshold level of three FSD indicators that would ensure the positive association between FDI and growth once these threshold levels are exceeded. The policy implication of this study is that policies directed towards attracting FDI should go along with and not precede policies that aim at promoting FSD. 

Key words: Growth, foreign direct investment, financial sector development and threshold.

Copyright © 2024 Author(s) retain the copyright of this article.

This article is published under the terms of the Creative Commons Attribution License 4.0

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