DOES DEMOCRACY IMPACT FDI INFLOW? STUDY OF COUNTRIES IN SUBSAHARA AFRICA

摘要

The political environment of a host country plays a vital role in MNCs strategic decision makingprocess in terms of investment placement and allocation. Recent literatures have had conflictingarguments on the impact of host country government on FDI inflows. In this paper, I investigateinto the influence of democracy on FDI inflow in Sub-Saharan Africa. The results suggest that asSub-Saharan countries progress towards stronger and more efficient democracy FDI inflowdeclines.