Publicação
The impact of institutional inefficiencies on FDI in Africa
| datacite.subject.fos | Ciências Sociais::Economia e Gestão | |
| dc.contributor.advisor | Reis, Nuno Manuel Rosa dos | |
| dc.contributor.advisor | Santos, João Neves de Carvalho | |
| dc.contributor.author | Almeida, Firmino Faustino Alfredo de | |
| dc.date.accessioned | 2026-09-21T15:47:37Z | |
| dc.date.available | 2026-09-21T15:47:37Z | |
| dc.date.issued | 2026-07-28 | |
| dc.description.abstract | The goal of this study is to investigate the impact of institutional inefficiencies on Foreign Direct Investment (FDI) in Africa, while also examining liberal democracy as a moderating variable measured through civil liberties, to assess whether democratic environments influence how institutional frictions affect foreign investment decisions. Institutional inefficiencies – such as bureaucratic delays, weak regulatory enforcement, corruption, and governance instability – increase uncertainty and operational risks, potentially discouraging foreign investment in Africa. The study adopts a quantitative approach using panel data and employs Ordinary Least Squares (OLS) regression analysis to examine the relationship between institutional inefficiencies and FDI inflows. The analysis includes several control variables commonly associated with FDI determinants, namely GDP per capita, trade openness, inflation, human capital, and gross fixed capital formation. The empirical framework utilizes a dataset comprising G7 home countries (Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States) and 48 African host countries. The findings indicate that institutional inefficiencies significantly reduce FDI inflows into African countries, confirming that weak institutional environments discourage investment from G7 multinational enterprises. Contrary to the initial expectations, liberal democracy was found to strengthen rather than mitigate the negative effects of institutional inefficiencies on FDI, suggesting that greater transparency and public accountability may increase the visibility of governance shortcomings and institutional risks. | eng |
| dc.identifier.tid | 204363136 | |
| dc.identifier.uri | http://hdl.handle.net/10400.8/16885 | |
| dc.language.iso | eng | |
| dc.rights.uri | N/A | |
| dc.subject | Foreign Direct Investment (FDI) | |
| dc.subject | Institutional Inefficiencies | |
| dc.subject | Liberal Democracy | |
| dc.subject | Africa | |
| dc.title | The impact of institutional inefficiencies on FDI in Africa | |
| dc.type | master thesis | |
| dspace.entity.type | Publication | |
| thesis.degree.name | Master in International Business |