Does foreign direct investment spur economic growth? New empirical evidence from sub-Saharan African countries

In this study we re-examine the relationship between foreign direct investment (FDI) and economic growth in 27 sub-Saharan African (SSA) countries during period 1990-2019. Unlike some previous studies, clustered SSA into two groups, namely low-income middle-income countries. We also employed three panel data techniques a stepwise fashion, dynamic ordinary least squares (DOLS), fully modified (FMOLS), heterogeneous Granger non-causality approaches. Our results show that while positive impact of FDI on is supported by both DOLS FMOLS countries, only technique supports finding. This shows may be sensitive to level income recipient country. Overall, inflows play larger role stimulating than These findings are corroborated results. However, these not surprising, given many tend more dependent inward stimulate their middle- Policy recommendations discussed.