Structural and Institutional Determinants of Investment Activity in Africa

Chuku, Chuku; Onye, Kenneth U.; Ajah, Hycent

doi:10.1007/978-3-319-44787-2_2

Advances in African Economic, Social and Political Development

2016

DOI: 10.1007/978-3-319-44787-2_2

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Structural and Institutional Determinants of Investment Activity in Africa

Chuku Chuku

Kenneth U. Onye

Hycent Ajah

Abstract: This paper considers the structural and institutional determinants of investment activity in selected African countries within a neoclassical framework. Generalized method of moments and a family of panel data estimation techniques are utilized in addition to nonparametric kernel regression techniques to uncover the relationship.Three main findings emerge; (i) financial openness and institutional quality are reasonably robust structural and institutional determinants of investment activity in Africa respective… Show more

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Cited by 3 publications

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References 30 publications

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“…The test hypothesis and some desirable properties of the test statistic are highlighted inChuku, Onye, and Ajah (2017), which involves a related application.…”

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confidence: 99%

Regional Financial Integration and Economic Activity in Africa

Ekpo¹,

Chuku

2017

Journal of African Economies

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Unlike in Asia and Europe, it is not clear what the pattern and impact of financial integration have been in Africa. This paper addresses three main issues: the progress and experience towards financial integration in Africa, the degree and timing of the integration process in selected African stock markets, and the effect of financial integration on economic activity. First, using time-varying parameters from a state-space model, we assess the degree and timing of financial integration in Africa and find results that indicate contemporary patterns toward increasing financial globalisation relative to regionalization. Second, using carefully specified parametric and nonparametric regression analyses, we find that higher levels of financial integration is associated with higher levels of growth and investment, but not necessarily total factor productivity. The relationships become even clearer when we zoom in on the nonparametric iso-growth surface plots, which show that there is a threshold level of financial development that is consistent with growth in a financially segmented economy. Finally, some policy implications are gleaned from the results and the experiences in Asia and Europe. Rights and Permissions All rights reserved. The text and data in this publication may be reproduced as long as the source is cited. Reproduction for commercial purposes is forbidden. The WPS disseminates the findings of work in progress, preliminary research results, and development experience and lessons, to encourage the exchange of ideas and innovative thinking among researchers, development practitioners, policy makers, and donors. The findings, interpretations, and conclusions expressed in the Bank's WPS are entirely those of the author(s) and do not necessarily represent the view of the African Development Bank Group, its Board of Directors, or the countries they represent.

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“…The test hypothesis and some desirable properties of the test statistic are highlighted inChuku, Onye, and Ajah (2017), which involves a related application.…”

mentioning

confidence: 99%

Regional Financial Integration and Economic Activity in Africa

Ekpo¹,

Chuku

2017

Journal of African Economies

Self Cite

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Governance and Domestic Investment in Africa

Iheonu

2019

Eur J Gov Econ

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The study empirically examined the impact of governance on domestic investment in 16 African countries with a balanced panel data set, between the years 2002 and 2015. The study employed six unbundled governance indicators from the World Bank, World Governance Indicators and constructed three bundled governance indicators using the Principal Component Analysis. The Driscoll and Kraay Fixed Effects model which accounts for serial correlation, groupwise heteroskedasticity and cross-sectional dependence were employed with empirical results revealing that all the indicators of governance positively and significantly influence domestic investment in Africa, except for government effectiveness which happens to be insignificant. Also, Voice/Accountability and the Control of Corruption exert more influence on domestic investment as indicated by their coefficient values. Furthermore, economic growth is also an important factor in explaining domestic investment in Africa. Policy recommendations are discussed.

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Tác động của Internet đến hoạt động đầu tư: Bằng chứng thực nghiệm tại một số quốc gia Đông Nam Á

Minh

2023

JEBVN

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Nghiên cứu này đánh giá ảnh hưởng của Internet đến hoạt động đầu tư tại 7 quốc gia Đông Nam Á giai đoạn 1996-2020 trên cơ sở sử dụng dữ liệu từ Ngân hàng Thế giới và các phương pháp thống kê khác nhau, bao gồm Pool-OLS, mô hình tác động ngẫu nhiên, mô hình tác động cố định và phương pháp tiếp cận Driscoll-Kraay. Kết quả nghiên cứu chỉ ra mối tương quan tích cực giữa tăng trưởng Internet và hoạt động đầu tư tại một số quốc gia Đông Nam Á. Ngoài ra, phát triển kinh tế thể hiện mối quan hệ tích cực với hoạt động đầu tư. Kết quả này nhấn mạnh tầm quan trọng của việc thực hiện các chính sách phù hợp tại các quốc gia Đông Nam Á nhằm thúc đẩy hoạt động đầu tư gia tăng.

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Structural and Institutional Determinants of Investment Activity in Africa

Cited by 3 publications

References 30 publications

Regional Financial Integration and Economic Activity in Africa

Regional Financial Integration and Economic Activity in Africa

Governance and Domestic Investment in Africa

Tác động của Internet đến hoạt động đầu tư: Bằng chứng thực nghiệm tại một số quốc gia Đông Nam Á

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