Purpose

Does the issuance of Eurobonds carry enough information about favourable domestic conditions to warrant more FDI inflows? In this study, the authors investigate how FDI is responding to the rising levels of Eurobonds in sub-Saharan African (SSA).

Design/methodology/approach

The study uses the system GMM model to set up a panel with all 17 SSA countries with Eurobonds. The dataset was transformed into time series, and the VAR model and Granger causality were used to diffuse the doubt of a possible bi-causal relationship between Eurobonds and FDI. Additionally, the authors use the impulse response function to test the behaviour of FDI to a one-time shock to Eurobonds.

Findings

The study reports that Eurobond levels matter in explaining FDI receipts. Specifically, the authors report that the issuance of Eurobonds leads to a favourable increase in FDI inflows. The authors transform our data into time series and use the VAR model and Granger causality test to diffuse the doubt of a possible bi-causal relationship between Eurobonds and FDI. The authors’ findings from this exercise suggest that two lag levels of Eurobond are a good predictor of future FDI flows. More also, the authors use the impulse response function to test the behaviour of FDI to a one-time shock to Eurobonds and report that a one-unit standard deviation shock to Eurobonds will cause FDI to swell up over at least 8 years.

Research limitations/implications

The study is limited in scope due to data availability. Future studies may consider using countries across the globe that have issued Eurobond to retest the current research objectives.

Practical implications

The study establishes grounds to suggest that the issuance of Eurobonds carry enough information to foreign investors in deciding on the location of FDI.

Originality/value

The study is uniquely opening a new frontier to the discussion on how one international capital can be used to bait other foreign capital. It also discusses signalling theory at the macro level.

中文翻译：

---

欧洲债券发行会影响外国直接投资的位置吗？来自撒哈拉以南非洲的证据

目的

欧洲债券的发行是否携带了有关有利的国内条件的足够信息，以保证有更多的外国直接投资流入？在这项研究中，作者调查了外国直接投资如何应对撒哈拉以南非洲（SSA）不断上升的欧洲债券水平。

设计/方法/方法

这项研究使用系统GMM模型建立了一个由17个拥有欧洲债券的撒哈拉以南非洲国家组成的小组。将数据集转换为时间序列，并使用VAR模型和Granger因果关系来分散对欧洲债券与FDI之间可能存在双因果关系的怀疑。此外，作者使用脉冲响应功能来测试FDI行为，从而对Eurobonds产生一次冲击。

发现

该研究报告称，欧洲债券水平在解释外国直接投资收入方面很重要。具体来说，作者报告说，发行欧洲债券导致外国直接投资流入量出现有利增长。作者将我们的数据转换为时间序列，并使用VAR模型和Granger因果关系检验来弥散对欧洲债券与外国直接投资之间可能存在双因果关系的怀疑。作者从这项工作中得出的结论表明，欧洲债券的两个滞后水平可以很好地预测未来的外国直接投资流量。此外，作者还使用脉冲响应函数来测试FDI对欧洲债券的一次性冲击的行为，并报告说，对Eurobonds进行的单位标准差冲击将导致FDI至少膨胀8年。

研究局限/意义

由于数据的可用性，研究范围有限。未来的研究可能会考虑使用全球发行Eurobond的国家来重新测试当前的研究目标。

实际影响

该研究奠定了基础，表明欧洲债券的发行为外国投资者提供了足够的信息，以决定外国直接投资的地点。

创意/价值

这项研究为讨论如何利用一种国际资本吸引其他外国资本开辟了一个新的领域。它还在宏级别上讨论了信令理论。