IDE, FINANCE ET CROISSANCE ECONOMIQUE EN AFRIQUE SUBSAHARIENNE

Résumé

This paper examines the role of the financial sector in the relationship between FDI and economic growth in Sub-Saharan Africa. We use panel data from 24 African countries over the period 1996-2014. The results obtained with the application of quantitative regression on instrumental variables, taking into account country fixed effects, show that financial development measured by bank credit improves the contribution of FDI to growth. This result is more significant in countries that are in the lower quantiles following the conditional distribution of per capita income. However, finance is not significant as a channel of transmission of FDI on growth when measured by a multi-dimensional index.  Based on this finding, the study recommends rethinking FDI promotion policies in Africa by articulating them in a coherent manner with financial sector support policies.