This article through a qualitative assessment identifies political risks confronted by FDI in inf... more This article through a qualitative assessment identifies political risks confronted by FDI in infrastructures project in African Conflicts Affected and Fragile (CAF) States and studies the structure for infrastructures financing which allows lessening political risks. Outside hydrocarbon sector which remains attractive even in a worse political context, African CAF regions infrastructures sector as other sectors remain unattractive to foreign investors. By considering global investors’ weak preferences for CAF countries infrastructures assets, due to high levels of political risks, we argue that: to fill the CAF States’ infrastructure gap and addressing at the same time political risks concern, an optimal solution is located in a strategic tricky balance between African SWFs as kick-started, Multi-Development Banks (MDBs) (like MIGA agency under the World Bank Group) and long-term institutional investors like foreign SWFs. In the initial phase, MDBs with both their flexibility and e...
Using a new world economic uncertainty index and applying the Generalised Method of Moments, this... more Using a new world economic uncertainty index and applying the Generalised Method of Moments, this paper investigates the effect of world economic policy uncertainty on foreign direct investment on a large panel of 138 countries over the period 1996-2018. With sample differentiated according to IMF classification, the results show that overall, world economic policy uncertainty reduces foreign direct investment and that, the magnitude of the effect is greater in emerging and developing countries than in advanced economies.
Abstract This article investigates effects of COVID-19 outbreak on Foreign Direct Investment (FDI... more Abstract This article investigates effects of COVID-19 outbreak on Foreign Direct Investment (FDI). Additionally, it examines how Sovereign Wealth Funds (SWFs) affect the COVID-19 – FDI nexus in 79 developed and developing countries. Unlike previous studies that incorporate an interaction term into the model to analyse the mediating effect of a given variable, in this paper we segment our sample into two sub-samples (countries with SWFs and countries without SWFs) and estimate the model for each sub-sample. Using a cross-sectional Ordinary Least Squares (OLS), results show that both the total number of death and the total cases are negatively correlated to FDI. Moreover, when considering the role of SWFs, regressions suggest that the COVID-19 outbreak reduces significantly FDI in countries without sovereign wealth funds, while its effect is non-significant in countries with SWFs.
Despite the large volume of studies on the direct impact of foreign direct investment on economic... more Despite the large volume of studies on the direct impact of foreign direct investment on economic growth, the results remain inconclusive. This has led researchers to examine the channels through which FDI affects economic growth. Evidence suggests that institution quality can improve economic growth by increasing foreign direct investment in the host countries. As governance quality is improving in African countries during the last decade, the aim of this study is to investigate the relationship between foreign direct investment, governance quality and economic growth in 51 African countries over the period 1998-2015. The empirical evidence is based on Generalized Method of Moments. The following findings are established. First, there is an unconditional positive effect of foreign direct investment on economic growth in African countries. We also find a positive and significant relationship between governance quality and economic growth. Second, these findings are still robust when...
provides economic analysis and policy advice with the aim of promoting sustainable and equitable ... more provides economic analysis and policy advice with the aim of promoting sustainable and equitable development. The Institute began operations in 1985 in Helsinki, Finland, as the first research and training centre of the United Nations University. Today it is a unique blend of think tank, research institute, and UN agency-providing a range of services from policy advice to governments as well as freely available original research. The Institute is funded through income from an endowment fund with additional contributions to its work programme from Finland, Sweden, and the United Kingdom as well as earmarked contributions for specific projects from a variety of donors.
This article through a qualitative assessment identifies political risks confronted by FDI in inf... more This article through a qualitative assessment identifies political risks confronted by FDI in infrastructures project in African Conflicts Affected and Fragile (CAF) States and studies the structure for infrastructures financing which allows lessening political risks. Outside hydrocarbon sector which remains attractive even in a worse political context, African CAF regions infrastructures sector as other sectors remain unattractive to foreign investors. By considering global investors’ weak preferences for CAF countries infrastructures assets, due to high levels of political risks, we argue that: to fill the CAF States’ infrastructure gap and addressing at the same time political risks concern, an optimal solution is located in a strategic tricky balance between African SWFs as kick-started, Multi-Development Banks (MDBs) (like MIGA agency under the World Bank Group) and long-term institutional investors like foreign SWFs. In the initial phase, MDBs with both their flexibility and e...
Using a new world economic uncertainty index and applying the Generalised Method of Moments, this... more Using a new world economic uncertainty index and applying the Generalised Method of Moments, this paper investigates the effect of world economic policy uncertainty on foreign direct investment on a large panel of 138 countries over the period 1996-2018. With sample differentiated according to IMF classification, the results show that overall, world economic policy uncertainty reduces foreign direct investment and that, the magnitude of the effect is greater in emerging and developing countries than in advanced economies.
Abstract This article investigates effects of COVID-19 outbreak on Foreign Direct Investment (FDI... more Abstract This article investigates effects of COVID-19 outbreak on Foreign Direct Investment (FDI). Additionally, it examines how Sovereign Wealth Funds (SWFs) affect the COVID-19 – FDI nexus in 79 developed and developing countries. Unlike previous studies that incorporate an interaction term into the model to analyse the mediating effect of a given variable, in this paper we segment our sample into two sub-samples (countries with SWFs and countries without SWFs) and estimate the model for each sub-sample. Using a cross-sectional Ordinary Least Squares (OLS), results show that both the total number of death and the total cases are negatively correlated to FDI. Moreover, when considering the role of SWFs, regressions suggest that the COVID-19 outbreak reduces significantly FDI in countries without sovereign wealth funds, while its effect is non-significant in countries with SWFs.
Despite the large volume of studies on the direct impact of foreign direct investment on economic... more Despite the large volume of studies on the direct impact of foreign direct investment on economic growth, the results remain inconclusive. This has led researchers to examine the channels through which FDI affects economic growth. Evidence suggests that institution quality can improve economic growth by increasing foreign direct investment in the host countries. As governance quality is improving in African countries during the last decade, the aim of this study is to investigate the relationship between foreign direct investment, governance quality and economic growth in 51 African countries over the period 1998-2015. The empirical evidence is based on Generalized Method of Moments. The following findings are established. First, there is an unconditional positive effect of foreign direct investment on economic growth in African countries. We also find a positive and significant relationship between governance quality and economic growth. Second, these findings are still robust when...
provides economic analysis and policy advice with the aim of promoting sustainable and equitable ... more provides economic analysis and policy advice with the aim of promoting sustainable and equitable development. The Institute began operations in 1985 in Helsinki, Finland, as the first research and training centre of the United Nations University. Today it is a unique blend of think tank, research institute, and UN agency-providing a range of services from policy advice to governments as well as freely available original research. The Institute is funded through income from an endowment fund with additional contributions to its work programme from Finland, Sweden, and the United Kingdom as well as earmarked contributions for specific projects from a variety of donors.
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Papers by Larissa Nawo