The impact of political instability and trade openness on FDI in Africa : a proposed structural equation model

Abstract EN

This study examined the impact of political instability and trade openness on FDI in Africa.

we applied a Sructural Equation Model basing on the path analysis.

The results suggest that the market size and trade openness are both directly impacting FDI in Africa.

In adition, FDI inflows seem to be also driven by political stability, voice and accountability and property right.

Oil production is an other determinant of FDI in Africa.

In the other hand, we had confirmed that trade openness is determined and explained by population, GDP per capita, surface area and state policy.

Our results highlited that population impact GDP and trade openness at the same time.