The status quo of research in sustainable FDI: exploring the theoretical agenda and policy inferences in West and Central Africa
Tóm tắt
This paper investigates the status quo in the literature on sustainable foreign direct investment "FDI" in West and Central Africa. It is believed that utilizing the FDI Qualities Policy Toolkit developed by the Organisation for Economic Co-operation and Development "OECD" will help identify which policies are acknowledged today and the ones that may need particular attention from academia and policymakers.
The paper utilizes a literature triangulation of FDI, sustainability, and economic development theories to extract the seed of a narrative helping to capture the current theoretical agenda and policy implications around the phenomenon of sustainable FDI in West and Central Africa. We selected and scrutinized (N = 53) articles published in various academic journals between January 2019 and March 2022 and investigating issues around sustainable FDI. The OECD framework later assisted in mapping today's theoretical agenda and policy inferences related to sustainable FDI in the region. It is acknowledged that there is an ongoing theoretical discussion informing on policy implications around the subject of sustainable FDI in West and Central Africa. It seems to be a consensus about the role of FDI's quality in enhancing sustainable regional growth. However, the use of the taxonomy has shown a clear focus on macroeconomic and ecological determinants reinforced through the OECD-defined policy dimensions of technical and financial support and international agreements and standards. The review allowed the perception of a theoretical gap in sustainability outcomes around the subjects of social justice in general and gender diversity in particular. It is recommended that academia and policymakers emphasize FDI theories and policies around the OECD framework of governance and domestic regulations. The paper informs through a literature-based review on determinants that academia and policymakers need to give particular attention to for better addressing all subjects around sustainable FDI in West and Central Africa. The paper proactively advises on specific phenomena that should be considered to avoid the fulfillment of the hypothesis of an "African sustainable growth tragedy."
Tài liệu tham khảo
Acemoglu D, Johnson S, Robinson J (2002) Reversal of fortune: geography and institutions in the making of the modern world income distribution. Q J Econ 117(4):1231–1294. https://doi.org/10.1162/003355302320935025
Adler P, Jermier J (2005) Developing a field with more soul: standpoint theory and public policy research for management scholars. Acad Manag J 48(6):941–944. https://doi.org/10.5465/AMJ.2005.19573091
Ancharaz VD (2003) Determinants of trade policy reform in sub Saharan Africa. J Afr Econ 12(3):417–443. https://doi.org/10.1093/jae/12.3.417
Andersen T, Jensen P (2014) Is Africa’s recent growth sustainable? Int Econ J 28(2):207–223. https://doi.org/10.1080/10168737.2013.825308
Appiah-Kubi S, Malec K, Maitah M, Kutin S, Pánková L, Phiri J, Zaganjori O (2020) The impact of corporate governance structures on foreign direct investment: a case study of West African countries. Sustainability 12(9):3715. https://doi.org/10.3390/su12093715
Arbache J, Page J (2010) How fragile is Africa’s recent growth? J Afr Econ 19(1):1–24. https://doi.org/10.1093/jae/ejp017
Asongu S, Odhiambo N (2021) Trade and FDI thresholds of CO2 emissions for a Green economy in sub-Saharan Africa. Int J Energy Sect Manag 15(1):227–245. https://doi.org/10.1108/IJESM-06-2020-0006
Bartunek J, Rynes S (2010) The construction and contributions of “Implications for Practice”: what’s in them and what might they offer? Acad Manag Learn Educ 9(1):100–117. https://doi.org/10.5465/AMLE.2010.48661194
Bekun F, Alola A, Gyamfi B, Ampomah A (2021) The environmental aspects of conventional and clean energy policy in sub-Saharan Africa: is N-shaped hypothesis valid? Environ Sci Pollut Res 28:66695–66708. https://doi.org/10.1007/s11356-021-14758-w
Boachie Yiadom E, Mensah L (2021) Environmental risk, FDI and tax reforms: why we must worry. Afr J Econ Manag Stud 12(2):269–284. https://doi.org/10.1108/AJEMS-08-2020-0399
Borensztein E, De Gregorio J, Lee J-W (1998) How does foreign direct investment affect economic growth? J Int Econ 45(1):115–135. https://doi.org/10.1016/S0022-1996(97)00033-0
Cecchetti S, Kharroubi E (2012) Reassessing the impact of finance on growth. (BIS Working Papers 381), pp 1–21. Retrieved 12-20, 2021, from https://www.bis.org/publ/work381.pdf
Dauda L, Long X, Mensah C, Salman M, Boamah K, Ampon-Wireko S, Kofi Dogbe C (2021) Innovation, trade openness and CO2 emissions in selected countries in Africa. J Clean Prod 281:125143. https://doi.org/10.1016/j.jclepro.2020.125143
Daviter F (2015) The political use of knowledge in the policy process. Policy Sci 48:491–505. https://doi.org/10.1007/s11077-015-9232-y
De Soto H (2000) The mystery of capital: why capitalism triumphs in the west and fails everywhere else. Basic Books, New York
Denisia V (2010) Foreign direct investment theories: an overview of the main FDI theories. Eur J Interdiscip Stud 3:53–59
Duodu E, Kwarteng E, Oteng-Abayie E, Frimpong P (2021) Foreign direct investments and environmental quality in sub-Saharan Africa: the merits of policy and institutions for environmental sustainability. Environ Sci Pollut Res Int 28(46):66101–66120. https://doi.org/10.1007/s11356-021-15288-1
Easterly W, Levine R (1997) Africa’s growth tragedy: policies and ethnic division. Q J Econ 112(4):1203–1250. https://doi.org/10.1162/003355300555466
Eun Mee K (2017) Gender and the sustainable development goals. Glob Soc Policy 17(2):239–244. https://doi.org/10.1177/1468018117703444
Fafchamps M (2000) Engines of growth and Africa’s economic performance. Discussion Paper, University of Oxford, Oxford. Retrieved 4-15, 2021, from http://www-leland.stanford.edu/~fafchamp/engines.pdf
Fofana M (2014) The influence of measures of economic freedom on FDI: a comparison of Western Europe and Sub-Saharan Africa. Glob Econ J 14(3–4):399–424. https://doi.org/10.1515/gej-2014-0023
Hafsi T, Demers C (1989) Le changement radical dans les organisations complexes: Le Cas d’Hydro-Québec. Gaëtan Morin, Montréal
Harrison AE (1996) Determinants and effects of direct foreign investment in Cote d’Ivoire, Morocco, and Venezuela. In: Roberts M, Tybout J (eds) Industrial evolution in developing countries. Oxford University Press for the World Bank, New York, pp 163–186
Juntunen M, Lehenkari M (2021) A narrative literature review process for an academic business research thesis. Stud High Educ 46(2):330–342. https://doi.org/10.1080/03075079.2019.1630813
Kamdem E (2000) L’analyse des organisations en Afrique : un champ émergent. Revue Africaine de Sociologie 4(2):92–132
Kindleberger C (1969) The theory of direct investment. In: Abroad AB, Kindleberger C (eds). Yale University Press, New Haven.
Kraus S, Breier M, Dasí-Rodr S (2020) The art of crafting a systematic literature review in entrepreneurship research. Int Entrep Manag J 16:1023–1042. https://doi.org/10.1007/s11365-020-00635-4
Matiza T, Oni O (2013) Nation branding as a strategic marketing approach to foreign direct investment promotion: the case of Zimbabwe. Mediterr J Soc Sci 4(13):475–488. https://doi.org/10.5901/mjss.2013.v4n13p475
Morrisset J (2000) Foreign direct investment to Africa: policies also matter. (W. D. World Bank, ed) Policy Research Working Paper, No. 2481, pp 107–125. Retrieved 11-20, 2020, from https://openknowledge.worldbank.org/handle/10986/19748
Moss T, Ramachandran V, Shah M (2004) Is Africa’s skepticism of foreign capital justified? Evidence from East African firm survey data. Center for Global Development, Working Paper No. 41. Retrieved 10-24, 2020, from https://www.piie.com/publications/chapters_preview/3810/13iie3810.pdf
Musah M, Owusu-Akomeah M, Nyeadi J, Alfred M, Mensah I (2022) Financial development and environmental sustainability in West Africa: evidence from heterogeneous and cross-sectionally correlated models. Environ Sci Pollut Res 29:12313–12335. https://doi.org/10.1007/s11356-021-16512-8
Nayak D, Choudhury R (2014) A selective review of foreign direct investments. ARTNeT Working Paper Series, vol 143, pp 1–34. Retrieved 10-19, 2020, from www.econstor.eu/bitstream/10419/103862/1/782793517.pdf
Newman M, Gough D (2020) Systematic reviews in educational research: methodology, perspectives and application. In: Zawacki-Richter O, Kerres M, Bedenlier S, Bond M, Buntins K (eds). Springer VS, Wiesbaden. https://doi.org/10.1007/978-3-658-27602-7_1
OECD (2013) Fragile states 2013: resource flows and trends in a shifting world. Organization for Economic Co-operation and Development. OECD-DAC, Paris. Retrieved 11-8, 2020, from https://www.oecd.org/dac/conflict-fragilityresilience/docs/FragileStates2013.pdf
OECD (2020) Global outlook on financing for sustainable development 2021: a new way to invest for people and planet. Organization for Economic Co-operation and Development. OECD iLibrary. https://doi.org/10.1787/e3c30a9a-en
OECD (2021) FDI Qualities Policy Toolkit: policies for improving the sustainable development impacts of investment. Organization for Economic Co-operation and Development. OECD. Retrieved 3-13, 2022, from https://www.oecd.org/daf/inv/investment-policy/FDI-Qualities-Policy-Toolkit-Consultation-Paper-2021.pdf
Ongo Nkoa B (2014) Foreign direct investment and economic growth: the experience of CEMAC countries. J Finance Econ 2(1):1–14. https://doi.org/10.12735/jfe.v2i1p1
Ongo Nkoa B, Song J (2018) Does the quality of institutions reduce the volatility of foreign direct investment in Africa? Mondes en développement 183(3):113–131. https://doi.org/10.3917/med.183.0113
Osabohien R, Iqbal B, Osabuohien E, Khan M, Nguyen D (2021) Agricultural trade, foreign direct investment and inclusive growth in developing countries: evidence from West Africa. Transnatl Corp Rev. https://doi.org/10.1080/19186444.2021.1936986
Parente R, Rong K, Geleilate J, Misati E (2019) Adapting and sustaining operations in weak institutional environments: a business ecosystem assessment of a Chinese MNE in Central Africa. J Int Bus Stud 50:275–291. https://doi.org/10.1057/s41267-018-0179-z
Shittu W, Yusuf H, El Moctar El Houssein A, Hassan S (2020) The impacts of foreign direct investment and globalization on economic growth in West Africa: examining the role of political governance. J Econ Stud 47(7):1733–1755. https://doi.org/10.1108/JES-09-2019-0446
Sichei M, Kinyondo G (2012) Determinants of FDI in Africa: a panel data analysis. Glob J Manag Bus Res 12(18):84–97
Tornell A, Lane P (1999) The voracity effect. Am Econ Rev 1(89):22–46. https://doi.org/10.1257/aer.89.1.22
Torvik R (2002) Natural resources, rent seeking and welfare. J Dev Econ 2(67):455–470. https://doi.org/10.1016/S0304-3878(01)00195-X
UNCTAD (2020) International production beyond the pandemic: international production beyond the pandemic. United Nations Conference on Trade and Development. Retrieved 10-20, 2020, from UNiLibrary. https://doi.org/10.18356/8a599f63-en
UNCTAD (2021) World Investment Report 2021: investing in sustainable recovery investing. United Nations Conference on Trade and Development. United Nations Publications, New York. Retrieved 3-10, 2022, from https://unctad.org/system/files/official-document/wir2021_en.pdf
Wang J-Y, Blomström M (1992) Foreign investment and technology transfer. Eur Econ Rev 36(1):137–155. https://doi.org/10.1016/0014-2921(92)90021-N
World Bank (2018) CEMAC: deepening regional integration to advance growth and prosperity. World Bank, Washington. Retrieved 1-10, 2021, from https://openknowledge.worldbank.org/bitstream/handle/10986/31942/Deepening-Regional-Integration-to-Advance-Growth-and-Prosperity.pdf?sequence=1&isAllowed=y
Yusuf H, Shittu W, Akanbi S, Umar H, Abdulrahman I (2020) The role of foreign direct investment, financial development, democracy and political (in)stability on economic growth in West Africa. Int Trade Polit Dev 4(1):27–46. https://doi.org/10.1108/ITPD-01-2020-0002