Foreing Direct Investment in Sub-Saharan Africa (SSA): An Opportunity for New Developed Countries (NDC)

Resumen

This paper examines new developed Countries’ (NDC) investment opportunities in SSA. We used panel data regression model to estimate the parameters on 18 SSA countries from 2000 to 2012. Data are collected from WDI and ADI data base (2013) CD-ROMS. We reached the conclusion that variables such as market size, inflation, taxes and wages significantly affect FDI attraction in SSA countries; furthermore, corruption, countries openness, and infrastructure development could not be seen as factors that absolutely impede on countries ability to attract FDI. We propose that ssa countries’ monetary authorities should review their exchange rate system in order to be able to have more control over inflation.

JEL Classification: F2, F210.