On the simultaneous openness hypothesis: FDI, trade and TFP dynamics in Sub-Saharan Africa

Artikel

This study assesses the simultaneous openness hypothesis that trade modulates foreign direct investment (FDI) to induce positive net effects on total factor productivity (TFP) dynamics. Twenty-five countries in Sub-Saharan Africa and data for the period 1980 to 2014 are used. The empirical evidence is based on the Generalized Method of Moments. First, trade imports modulate FDI to overwhelmingly induce positive net effects on TFP, real TFP growth, welfare TFP and real welfare TFP. Second, with exceptions on TFP and welfare TFP where net effects are both positive and negative, trade exports modulate FDI to overwhelmingly induce positive net effects on real TFP growth and welfare real TFP. In summary, the tested hypothesis is valid for the most part. Policy implications are discussed.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Journal of Economic Structures ; ISSN: 2193-2409 ; Volume: 9 ; Year: 2020 ; Issue: 5 ; Pages: 1-27 ; Heidelberg: Springer

Classification and Topics

• Classification: Wirtschaft ; Macroeconomics: Production ; International Investment; Long-term Capital Movements ; International Finance: General ; Telecommunications ; Economywide Country Studies: Africa
• Subject: Productivity ; Foreign investment ; Sub-Saharan Africa

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Asongu, Simplice ; Nnanna, Joseph ; Acha-Anyi, Paul N.
• Event: Veröffentlichung
• (who): Springer
• (where): Heidelberg
• (when): 2020

Further information

• DOI: doi:10.1186/s40008-020-0189-4
• Handle: http://hdl.handle.net/10419/261552
• Last update: 10.03.2025, 11:42 AM CET