Article Literature Review Outline
On the Determinants of Foreign Direct Investment to Developing Countries: is Africa different?
A country’s characteristics entice or discourage FDI.
How the named variables affect FDI are shown in a table (for a complete view, see Chakrabarti, 2001, and Gastanaga et al., 1998) (Asiedu 110).
The results are shown in the two researchers to conflict.
The article is not interested in addressing the conflicting empirical results.
-The objective of the article is to examine the degree to which variables that are from earlier research illustrate the variation in FDI for the Author’s samples and analyze if those variables contain different influence on FDI to SSA.
Trade Causes Growth in Sub-Saharan Africa
– Brückner and Daniel
-Frankel and Romer, 1999
– Disparities among countries in trade correlate with GDP per capita. Geographical distance affects international business, where nearby countries are likely to participate more in trading.
– Acemoglu et al., 2001
-Historical relationships during colonial era illustrate the differences in international governance and institutions.
– Rodrik et al. 2004
– Criticized reports that international trade is related to higher rates of development or GDP per Capita.
– Endogeneity of international trade together with econometric problems raises questions on the credibility of Fr…
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