1 Department of Banking and Finance, Caritas University, Enugu, Nigeria.
2 Department of Accountancy, Caritas University, Enugu, Nigeria.
World Journal of Advanced Research and Reviews, 2024, 21(01), 2521–2528
Article DOI: 10.30574/wjarr.2024.21.1.2581
DOI url: https://doi.org/10.30574/wjarr.2024.21.1.2581
Received on 07 November 2023; revised on 22 January 2024; accepted on 24 January 2024
This study explores the influence of Foreign Direct Investment (FDI) on the growth trajectory of the manufacturing sector in Sub-Saharan Africa. The research employs the panel Autoregressive Distributed Lag (ARDL) estimation technique on data spanning from 1985 to 2021. The findings reveal that FDI and TOP positively impact the manufacturing sector's growth in the long run, while GFCF exerts a negative influence. However, these effects are not observed in the short run. The study underscores the need for policies that enhance the investment climate and foster trade openness to stimulate manufacturing sector growth. The adverse impact of GFCF calls for additional research to uncover the underlying causes and propose potential remedial measures. This study offers critical insights for policy formulation and paves the way for future research in economic development in Sub-Saharan Africa.
Foreign direct investment; Manufacturing sector; ARDL; Capital formation; Africa
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Ebele Sabina Nsofor, Chimaobi Desmond Obani and Charles Ikechukwu Agu. Impact of foreign direct investment on manufacturing sector growth in sub-Saharan Africa. World Journal of Advanced Research and Reviews, 2024, 21(01), 2521–2528. Article DOI: https://doi.org/10.30574/wjarr.2024.21.1.2581
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