Examining Foreign Direct Investment versus Domestic, Regional, and International Policy Actions in Developing Countries.

摘要

Low levels of domestic savings and inadequate entree into international markets have been characteristics of most developing countries and economic growth has been a significant challenge for many African countries. Foreign Direct Investment was reasoned as part of the solution to economic growth in Africa yet; Foreign Direct Investment inflows to Africa have remained small with investors wary of political risk, macroeconomic uncertainty, and cross-country differences. The purpose of the current quantitative correlational study was to investigate the relationship of domestic, regional, and international actions with Foreign Direct Investment in developing countries and to investigate whether the relationships differed for African and non-African countries. The results of correlation analysis for Foreign Direct Investment versus domestic, regional, and international policy action variables ranged from .90 to -.21, at p < .01 and at p < .05 significance level. Multiple regression results indicated that gross domestic product (GDP) was a predictor of Foreign Direct Investment [ beta=.92, t (93), p <.05], telephone [beta; = .38, t (100), p <.05], regional integration [beta; = .55, t (100) =, p <.05], and trade [beta; =.-21, t (101) =, p <.05]. Gross Domestic Product was a stronger predictor of Foreign Direct Investment than telephone and regional integration variables. Multiple regression results of African and Non-African countries indicated telephone center x Africa variable [beta; =.-.19, t (97), p <.05], Trade center x Africa variable [beta = .26, t (99), p <.05] was a predictor of Foreign Direct Investment. Multiple regression results showed the interaction variables change in R2 were significant.