Journal of Legal, Ethical and Regulatory Issues (Print ISSN: 1544-0036; Online ISSN: 1544-0044)


Enhancing Internet Penetration for Foreign Direct Investment in Sub-Saharan Africa

Author(s): Omozokpia Davidson Osagie, Olokoyo Felicia Omowunmi

This paper explores the effect of internet penetration on foreign direct investment. This study uses a panel dataset of all the 48 Sub-Saharan African countries, which is extracted from World Bank database for the period 2000-2018. This study employs three distinct regression techniques such as Ordinary Least Square (OLS), Fixed Effect Regression (FE) and Generalized Moment of Method (GMM). Ordinary Least Square and Fixed Effect Regression tends to be biased and inconsistent. Therefore, the Generalized Methods of Moment estimator eliminate the stated effects alongside with the time-invariant regressors. The subsequent findings are recognized: (i) the coefficient estimates of the internet penetration on foreign direct investment is positive and statistically significant; (ii) the net effect of both internet penetration has positive on the FDI inflows. In the lights of the established findings, this study recommends that the governments in the region should implement policies that could help enhance the usage and penetration of technology.

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