The Effect of Foreign Direct Investment (fdi) on the Current Account Balance (cab) of Selected West Africa Countries

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F24%3A43926326" target="_blank" >RIV/62156489:43110/24:43926326 - isvavai.cz</a>

Result on the web

<a href="https://journals.co.za/doi/abs/10.31920/1750-4562/2024/v19n4a4" target="_blank" >https://journals.co.za/doi/abs/10.31920/1750-4562/2024/v19n4a4</a>

DOI - Digital Object Identifier

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Result language

angličtina

Original language name

The Effect of Foreign Direct Investment (fdi) on the Current Account Balance (cab) of Selected West Africa Countries

Original language description

As opposed to a current account surplus, majority of developing economies experience current account deficits. It is gradually preferable to use foreign direct investment (FDI) rather than other foreign capital inflows to alleviate the current account imbalance. It may, nevertheless, also be a factor in a current account deficit. This study uses the pooled Ordinary Least Squares (OLS) regression technique to investigate the influence of foreign direct investment on the current account balances of four West African countries: Nigeria, Ghana, Cote d&apos;Ivoire, and Senegal. The study spans from 1990 to 2019. The findings indicate that trade openness, real effective exchange rates, and FDI inflows have a negative influence on the current account balance. The study recommends that policymakers prioritize investments that come with value addition, employ the skilled labor force of the host economy, target an economy&apos;s productive sector, as opposed to its consumption sector and promote exports.

Czech name

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Czech description

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Type

J_SC - Article in a specialist periodical, which is included in the SCOPUS database

CEP classification

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OECD FORD branch

50204 - Business and management

Project

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Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2024

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

African Journal of Business and Economic Research

ISSN

1750-4554

e-ISSN

1750-4562

Volume of the periodical

19

Issue of the periodical within the volume

4

Country of publishing house

GB - UNITED KINGDOM

Number of pages

17

Pages from-to

65-81

UT code for WoS article

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EID of the result in the Scopus database

2-s2.0-85213014326