ADI und Wirtschaftswachstum in Afrika

The aim of this paper is to examine the role of institutional quality in relation to the relationship between foreign direct investment and economic growth in Africa. Using a sample of 30 countries, we estimated an ARDL model through PMGs for the period 2002-2020. The results show that institutional quality has a positive and significant long-term impact on the relationship between foreign direct investment and economic growth. This is particularly true for the rule of law, freedom of expression, regulatory quality, and political stability. Therefore, African governments need to improve these indicators to enhance the effectiveness of institutional quality concerning the relationship between foreign direct investment and economic growth.