FDI and economic growth in Africa

The aim of this paper is to examine the role of institutional quality in the relationship between FDI and economic growth in Africa. Using a sample of 30 countries we have estimated an ARDL model by PMG over the period 2002-2020. The results show that in the long term the quality of institutions has a positive and significant influence on the FDI-economic growth relationship. This is particularly true of the rule of law freedom of expression regulatory quality and political stability. African governments therefore need to improve these indicators in order to consolidate the effectiveness of institutional quality in the FDI-economic growth relationship.