Nonlinear Effects of Trade Integration on Foreign Direct Investment in Sub-Saharan Africa

Bibliographic Data

ID2773274
AuthorsKolo Nebie (Department of Economics, CEDRES Université Thomas SANKARA Saaba Burkina Faso), Issaka Ouédraogo (0000-0001-6058-0359, Department of Economics, CEDRES Université Thomas SANKARA Saaba Burkina Faso, corresponding author), Relwendé Sawadogo (0000-0002-3389-2418, Institut Burkinabè Des Arts et Métiers (IBAM), CEDRES Université Joseph KI‐ZERBO Ouagadougou Burkina Faso)
Year2025
Volume85
Issue1
Pages63-81
Publication date2025-07-07
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueAmerican Journal of Economics and Sociology (JOURNAL)
Journal identifiersISSN: 0002-9246 • E-ISSN: 1536-7150
PublisherWiley (PUBLISHER • GB)
DOI10.1111/ajes.70003
OpenAlexW4412096377
LanguageEN
Citations received2
References cited52

This research analyses the effects of trade integration on foreign direct investment (FDI) in a dynamic panel of 30 sub-Saharan African countries over the period 2002-2022. It uses the Pull and Push factors model, which is estimated by the two-step system generalized method of moments. The results show that trade integration fosters FDI. However, this positive effect becomes negative when trade integration exceeds the 103% threshold. The results imply that policymakers in Sub-Saharan Africa should control trade integration to attract FDI to their countries

Economic integration · Economics · Foreign direct investment · International economics · International trade · Macroeconomics · Nonlinear system · Physics · Economic Growth and Development · Global trade and economics · International Business and FDI

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