Open AccessMarket size and foreign direct investment in sub-Saharan Africa: the role of education
Author(s) -
JEMILUYI Olofunmilayo Olayemi,
James Temitope Dada
Publication year - 2018
Publication title -
jurnal perspektif pembiayaan dan pembangunan daerah
Language(s) - English
Resource type - Journals
eISSN - 2355-8520
pISSN - 2338-4603
DOI - 10.22437/ppd.v6i1.5140
Subject(s) - foreign direct investment , market size , proxy (statistics) , gross domestic product , nexus (standard) , population , investment (military) , economics , panel data , demographic economics , business , economic growth , international economics , macroeconomics , econometrics , political science , demography , statistics , politics , law , mathematics , sociology , computer science , embedded system
This study examines the role of education in the nexus between foreign direct investment (FDI) and market size in sub-Saharan African countries from 2005 to 2015 using a panel of 30 countries. Market size is proxy by gross domestic product and population while two variables are used to measure education; primary school enrolment and secondary school enrolment. Difference Generalised Method of Moments (GMM) is used as the estimation technique. The result shows that education and market size have positive and significant effect on foreign direct investment. The interactive effect of market size (population and gross domestic product) and education (both primary and secondary school enrolment) has positive effect on foreign direct investment. The study concludes that policy maker in the region should focus more on the quality of education rather than quantity of education.
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