Table IV Foreign direct investment,...

Table IV

Foreign direct investment, external debt and financial development baseline results

Variables	Model 1	Model 2
FD(−1)	0.335 (0.000)***	0.295 (0.000)***
EXD	0.021 (0.044)**
FDI		0.093 (0.046)**
GDPPC	0.002 (0.439)	0.002 (0.1238)
MS	0.191 (0.002)***	0.162 (0.000)***
TO	0.019 (0.635)	0.034 (0.077)*
GE	−5.626 (0.218)	−5.693 (0.033)**
RQ	−3.733 (0.2034)	−2.741 (0.026)**
RL	6.789 (0.019)**	4.270 (0.023)**
J-statistics	13.132	17.046
Prob(J-statistics)	0.592	0.519
AR(1)	0.245	0.0205
AR(2)	0.455	0.271
df	345	377

Variables	Model 1	Model 2
FD(−1)	0.335 (0.000)***	0.295 (0.000)***
EXD	0.021 (0.044)**
FDI		0.093 (0.046)**
GDPPC	0.002 (0.439)	0.002 (0.1238)
MS	0.191 (0.002)***	0.162 (0.000)***
TO	0.019 (0.635)	0.034 (0.077)*
GE	−5.626 (0.218)	−5.693 (0.033)**
RQ	−3.733 (0.2034)	−2.741 (0.026)**
RL	6.789 (0.019)**	4.270 (0.023)**
J-statistics	13.132	17.046
Prob(J-statistics)	0.592	0.519
AR(1)	0.245	0.0205
AR(2)	0.455	0.271
df	345	377

Notes: Table IV presents the results of the relationship between external debt and FDI for the sampled 37 African economies from 2002 to 2015. FD denotes financial development; GE represents governments effectiveness; RL means rule of law; RQ represents regulatory quality; FDI means FDI; GDPPC represents gross domestic product per capita; TO denote trade openness. *,**,***Significance at the 10, 5 and 1 per cent of levels, respectively

Source: Authors computation (2017)

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