Impact of Foreign Direct Investment on Economic Growth in Sub-Sahara Africa Countries

This study examines the impact of foreign direct investment on economic growth in Sub Saharan African countries using a Panel Autoregressive Distributed Lag (P-ARDL) model. We employ this method due to its flexibility in accommodating both stationary and non-stationary time series, as well as series with mixed integration orders. The findings indicate that, despite varied short-term impacts, foreign direct investment, human capital, and GDP per capita have substantial long term effects on economic growth in the region. These findings contribute to the debate on FDI’s role in tackling widespread poverty and high unemployment challenges.