Neo-Liberal Policy and Foreign Direct Investment in Africa

Document Type

Article

Publication Date

9-1-2012

Publication Title

International Journal of Business and Social Science

Abstract

This paper analyzes the effects of Neo-liberal policy on FDI in Africa. It uses Freedom Index scores provided by the Heritage Foundation and the Wall Street Journal as a proxy for implementation of Neo-liberal policy. Using a panel-data regression from 1998to 2009, we find that the only Freedom Index measurement that has a statistically significant and positive effect on FDI in Africa was the absence of corruption, suggesting that Neo- liberal policy has had little significance in the FDI-decision making process in the region.

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