Arbeitspapier
African greenfield investment and the likely effect of the African Continental Free Trade Area
Using sector-level data on bilateral greenfield investment for 198 source and destination countries over 2003-2018 in a structural gravity model, we examine the likely effect of the African Continental Free Trade Area (AfCFTA) on African investment. Conditional general equilibrium estimates from counterfactual analysis show that the stock of intra-African greenfield investment in 2018 would have increased by 14 percent from a successful implementation of the AfCFTA in that year relative to the baseline scenario of no agreement. Exploring possible transmission channels for the investment- enhancing effect of the AfCFTA, we find the intra-African trade elasticity of greenfield investment to be positive, including for intermediates, especially in host countries with strong governance indicators. However, the effect of regulatory cooperation via bilateral investment treaties is found to be negative. This suggests that trade liberalization under the AfCFTA is more likely to foster intra-African investment via its positive effect on intra-African trade.
- Sprache
-
Englisch
- Erschienen in
-
Series: Working Paper ; No. 387
- Klassifikation
-
Wirtschaft
Investment; Capital; Intangible Capital; Capacity
International Investment; Long-term Capital Movements
- Thema
-
Africa
greenfield investment
fDI Markets
AfCFTA
gravity model
conditional GE
counterfactual analysis
transmission channels
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Shingal, Anirudh
Mendez Parra, Maximiliano
- Ereignis
-
Veröffentlichung
- (wer)
-
Indian Council for Research on International Economic Relations (ICRIER)
- (wo)
-
New Delhi
- (wann)
-
2020
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Shingal, Anirudh
- Mendez Parra, Maximiliano
- Indian Council for Research on International Economic Relations (ICRIER)
Entstanden
- 2020
Ähnliche Objekte (12)
A Procedure Likely to Remain Rare in the African System
The ethics of African regional and continental integration
The ethics of African regional and continental integration
The ethics of African regional and continental integration
African Continental Free Trade Agreement: A review of analyses of likely impacts and challenges of implementation
The long journey towards Pan-African integration: The African Continental Free Trade Area and its challenges
Geology of Northwest African continental margin
African developments: continental integration in Africa - AU, NEPAD and the APRM
The African Mask
Christianising the African
The African Venus
Phylogeny and Taxonomy of Continental African Sabicea (Rubiaceae)
A Procedure Likely to Remain Rare in the African System
The ethics of African regional and continental integration
The ethics of African regional and continental integration
The ethics of African regional and continental integration
African Continental Free Trade Agreement: A review of analyses of likely impacts and challenges of implementation
The long journey towards Pan-African integration: The African Continental Free Trade Area and its challenges
Geology of Northwest African continental margin
African developments: continental integration in Africa - AU, NEPAD and the APRM
The African Mask
Christianising the African
The African Venus
Phylogeny and Taxonomy of Continental African Sabicea (Rubiaceae)
A Procedure Likely to Remain Rare in the African System
The ethics of African regional and continental integration
The ethics of African regional and continental integration
The ethics of African regional and continental integration
African Continental Free Trade Agreement: A review of analyses of likely impacts and challenges of implementation
The long journey towards Pan-African integration: The African Continental Free Trade Area and its challenges
Geology of Northwest African continental margin
African developments: continental integration in Africa - AU, NEPAD and the APRM
The African Mask
Christianising the African
The African Venus