Regional Foreign Direct Investment Potential in Selected African Countries

Abstract

The recent devolutionary trend across the world has been in part fuelled by claims of a supposed ‘economic growth by direct investment dividend’ associated with the fiscal decentralization. There is however, little empirical evidence to substantiate these claims. Most prior research has determined different research techniques of measurement by generating mix results. More so, these studies do not differentiate between short and long run techniques and mechanisms through which county expenditure affects economic growth, by investment growth, and by foreign reserve of African countries. The background has investigated empirically the short and long run techniques effect of components of county expenditure on economic growth investment, by foreign direct investment growth in the African countries in period of 2013 to 2017. The variables tested by unit root by no stationary at interval levels. The long and short run of variables computed by ARDL methods by Keynesian theory. However, the budget allocation and execution improved to capital infrastructure and like transport communication help to improve private capital accumulation and economic growth.