The objective of this paper is to analyze the
effects of natural resource endowment on Foreign Direct Investment (FDI)
inflows in Sub-Saharan African countries. The data cover the period of
1996-2019 and are extracted from UNCTAD and World Bank databases (WDI, 2019; WGI, 2019). A dynamic model with individual effects is estimated in four
partially homogeneous panels using the one-step generalized method of moments.
The results obtained show that 1)
forest resources have a beneficial but negligible effect on FDI inflows in
Sub-Saharan Africa; 2) oil
and mining resources have significant and negligible adverse effects on FDI
inflows in Central Africa and West Africa, respectively; and 3) oil and mining
resources, in contrast, have significant and negligible positive effects on FDI
inflows in Southern Africa and East Africa, respectively. Regarding the development of the forestry industry in Sub-Saharan Africa, the
strengthening of political stability and control of corruption in Central and
West Africa and the strengthening of corruption control in Southern and East
Africa are the main economic policy implications.
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