Artikel

The impact of foreign direct investment, foreign aid and trade on poverty reduction: Evidence from Sub-Saharan African countries

Despite postulations on the effects of foreign direct investment (FDI), foreign aid, and trade on growth, empirical evidence from extant research has been mixed. The focus of recent research has shifted from the growth effects of these international flows to their poverty reduction effects. However, results have also been mixed. Most studies have examined the empirical evidence of these flows separately and have mostly conducted single country studies. In this study, we use data from twenty-nine countries in Sub-Saharan Africa between the period 1990-2017 to analyze the effects of FDI, trade, and foreign aid on poverty reduction in a single model using the Feasible Generalized Least Square (FGLS) technique. Our results show that FDI and foreign aid have a negative effect on poverty reduction in the countries studied. These results suggest that the level of FDI required to alleviate poverty has not been reached, and foreign aid have not been properly channeled. However, the results show that trade has a positive and significant impact on poverty reduction, especially in low-income countries. We conclude with policy recommendations.

Sprache
Englisch

Erschienen in
Journal: Cogent Economics & Finance ; ISSN: 2332-2039 ; Volume: 8 ; Year: 2020 ; Issue: 1 ; Pages: 1-14 ; Abingdon: Taylor & Francis

Klassifikation
Wirtschaft
International Investment; Long-term Capital Movements
Foreign Aid
Trade: General
Welfare, Well-Being, and Poverty: General
Thema
foreign direct investment
foreign aid
trade
poverty reduction
SSA
FGLS

Ereignis
Geistige Schöpfung
(wer)
Anetor, Friday Osemenshan
Esho, Ebes
Verhoef, Grietjie
Ereignis
Veröffentlichung
(wer)
Taylor & Francis
(wo)
Abingdon
(wann)
2020

DOI
doi:10.1080/23322039.2020.1737347
Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Artikel

Beteiligte

  • Anetor, Friday Osemenshan
  • Esho, Ebes
  • Verhoef, Grietjie
  • Taylor & Francis

Entstanden

  • 2020

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