The Role Of Foreign Direct Investments In Africa

The Role of Foreign Direct investitures and Exports in Sub-Saharan African Countries

Introduction
Foreign Direct Investment (FDI) by definition is a communitys purchase of real assets, such as land, toil facilities and equipment, in a foreign democracy. Typically, a pixilated that chooses to invest in another awkward is known as a Multi-National Corporation or MNCs. Foreign Direct Investment in a nutshell is the movement of cap from one sylvan to another. FDI represents real investments in land, non-residential investment (buildings or other structures), and equipment and package (Sawyer, 2009). This particular investment normally involves a domestic corporation establishing a foreign subsidiary or buying an vivacious firm.
Foreign Direct Investment has been an important source of frugal reaping and development for many African nations, as it allows the influx of technology, capital investment and management knowledge needed for the growth (UNCTAD WIR, 2004). This paper elaborates the study of the relationship between FDI, exports and economical growth in selected sub-Saharan African countries. Exports, the part of domestic production that is sold to resident of other countries, can increase productiveness that in turns improves the economies of scale of a nation.



Many studies have shown present that export alleviates the foreign exchange constraints that hinder greater plan of attack to international markets.
Despite the fact that previous studies and theories indicate that FDI and foxiness have a positive effect on the economic growth of a country, such impact differs from country to country depending on other factors such as human capital, political stability, trade liberalization, policies and openness of trade, government consumption, taxation, to mention a few. FDI is a tool for economic growth as international capital flows in which a firm in one country develops a subsidiary in another. Trade liberalization in many African nations is a recent development....If you want to ingest a full essay, order it on our website: Orderessay



If you want to get a full essay, wisit our page: write my essay .