Open AccessForeign Direct Investment in the West African Region: Analyses on the Values of Inflow and Outflow
Author(s) -
Evans Yeboah,
Jing Yu
Publication year - 2020
Publication title -
risk and financial management
Language(s) - English
Resource type - Journals
eISSN - 2690-9804
pISSN - 2690-9790
DOI - 10.30560/rfm.v2n1p15
Subject(s) - foreign direct investment , inflow , outflow , international economics , capital outflow , foreign capital , globe , investment (military) , capital (architecture) , business , international trade , economics , development economics , geography , capital formation , political science , economic growth , human capital , financial capital , macroeconomics , medicine , archaeology , meteorology , politics , ophthalmology , law
With regards to the ongoing development in investment activities in the Economic Community of West African States(ECOWAS) and the entire African continent is because of institutional reforms and initiation of sound investment policies. Foreign direct investment(FDI) inflow and outflow severs as a source of capital formation for most developing and least developed countries. This paper provides an overview and analyses of the flow of FDI to the ECOWAS region by considering 16 nations under this region in determining their performance towards FDI attraction and their contribution to outward FDI across the globe by the use of the quantitative method. The outcome shows that there is a continuous decline in FDI inflow to the ECOWAS region over the past 10 years. The result also proves that Ghana and Nigeria are the major recipients of foreign direct investment inflows in the West African region. The result further indicates that Nigeria is the major contributor of outward FDI from the ECOWAS region. It is recommended that the region should increase its outward FDI.