ARMED CONFLICTS AND FOREIGN DIRECT INVESTMENT: EVIDENCE FROM SUB-SAHARAN AFRICA
Halilu Bello Rogo
Volume 2 Issue 2
Abstract
Countries in Sub-Saharan Africa have been ravaged by varying forms of conflicts, which has not only resulted in loss of lives and properties but has had a far reaching effect in disruption of economic activities. To determine the influence of armed conflicts on FDI in Sub-Saharan Africa, forty years (1980 to 2020) panel data drawn from sample of twenty-six countries was analysed, using Pooled Mean Group (PMG) panel ARDL model. The study used FDI dependent variable, while internal and external conflicts were employed as proxies of armed conflict, which is the explanatory variable. The study also controlled for socio economic factors and corruption. The study found that internal conflict is not statistically significant, external conflict has negative effect on FDI. Therefore, it is recommended that governments should evolve effective conflict resolution measures, especially at national and international levels. Keywords: Armed, Conflict, Foreign, Investment
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