Open AccessForeign Direct Investment and Spillover Effects in Africa: An Empirical Review
Author(s) -
Richard Kotey
Publication year - 2019
Publication title -
international journal of science and management studies
Language(s) - English
Resource type - Journals
ISSN - 2581-5946
DOI - 10.51386/25815946/ijsms-v2i3p102
Subject(s) - foreign direct investment , spillover effect , stylized fact , technology transfer , bridging (networking) , economics , international economics , empirical evidence , technology gap , empirical research , developing country , economic geography , international trade , business , macroeconomics , economic growth , computer science , computer network , philosophy , epistemology
The purpose of this paper is to holistically present relevant empirical findings on FDI, economic growth and spillover effects in the African continent, focusing primarily on technology transfer. This review shows evidence to suggest the FDI coming into Africa is low compared to other continents, even though foreign investments have consistently yielded higher returns. The paper also presents stylized facts of FDI inflows and examines the strands in literature. Aunique graphical framework showing technology transfer channels is well elaborated. The study provides a sufficient empirical view of FDI and technology transfer in the African contextand suggests this transfer of technology could be the means of bridging the technology gap between developed and developing economies.