The Effects of Good Governance on FDI Inflows to Agriculture in Sub-Saharan African Countries

Student: Palchikova Kristina

Educational Programme: Political Science (Bachelor)

Year of Graduation: 2019

In this paper, we examined the effects of Good Governance indicators on foreign direct investment inflows in agriculture of Sub-Saharan Africa while controlling influential economic factors. As far as there are studies that reveal the significant impact of political institutions’ quality on FDI inflows in developing countries, it was interesting for us and important to understand whether Good Governance plays the same role precisely for agriculture sector as it is the mainstay of Sub-Saharan African economy. To test the significance of Good Governance, we analyzed a panel with 44 countries over the period of 1996-2016 years by pooled OLS regression and model with country and year fixed effects. As a result of empirical analysis, we find out that the quality of such political institutions as rule of law, regulatory quality and control of corruption have an impact in attracting FDI in agricultural sector.

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