Robust FDI Determinants in Sub-saharan African Countries

Abstract

The aim of this paper is to identify the robustness of the determinants of FDI in sub-Saharan African countries over the period 1985 to 2012. This is done through the use of a linear dynamic panel model, estimated by the Bayesian Averaging of Maximum Likelihood Estimates (BAMLE) developed by Moral Benito (2012). The empirical analysis show the following key results: (i) natural resources and market size are the most robust determinants; (ii) inflation, infrastructure, human capital and trade openness are weak robust; (iii) corruption and political instability are very less robust determinants.