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Trade Openness, Foreign Direct Investment, and Human Development
Angielski
106 b
Nawet do 30 dni na zwrot
Does trade openness improve lives in Sub-Saharan Africa? Does foreign investment reach beyond GDP and shape human development? This book investigates these questions using panel data from 29 Sub-Saharan African countries over the period 2010-2019, applying panel cointegration and a panel vector error correction model to trace both long- and short-run dynamics. The evidence is clear on several fronts. Trade openness and foreign direct investment both have a positive and significant long-run effect on human development, as does per capita GDP. Foreign aid, however, tells a different story: its effect on human development is negative in both the short and long run. Inflation undermines long-run progress despite a brief positive association in the short run. The book argues for three policy shifts: channeling foreign investment into welfare-building activities, lowering trade barriers through broader agreements, and redirecting aid from humanitarian relief toward education and health.
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