ABSTRACT

In this paper, the causal relationship between financial development and foreign direct investment in sub-Saharan African (SSA) countries is examined. Three proxies of financial development, namely bank deposits, deposit money bank assets, and liquid liabilities have been used to examine this linkage. Using a multivariate panel Granger-causality model, the study found that the causal relationship between financial development and foreign direct investment is dependent on the variable used to measure the level of financial development. The relationship also varies over time. Overall, the study found a causal flow from FDI to financial development to predominate, at least in the short run. The study, therefore, recommends that policies aimed at attracting foreign direct investment inflows should be prioritised in SSA countries in the short run, in order to foster the development of the financial sector in the region.

摘要

本文研究了撒哈拉以南非洲地区金融发展与外国直接投资之间的因果关系。金融发展的三个代理，即银行存款，存款货币的银行资产和流动负债已被用来检验这种联系。使用多元面板格兰杰因果关系模型，研究发现金融发展与外国直接投资之间的因果关系取决于用来衡量金融发展水平的变量。关系也随着时间变化。总体而言，该研究发现，至少在短期内，从外国直接投资到金融发展的因果关系占主导地位。因此，该研究建议，短期内在撒哈拉以南非洲国家应优先考虑旨在吸引外国直接投资流入的政策，