FDI, Export and GDP Per Capital in African Countries: A GMM Estimation

Abstract

This study seeks to investigate empirically the effect of FDI and Export on GDP per capital using sample of 40 African countries for the period 2005 to 2019 applying the GMM technique of estimation. The result of the study revealed that FDI posits a negative and statistical significance effect on GDP per capital in the short run. Export has a positive and statistical significant effect on GDP per capital in the short run. In the long run, FDI has a negative and significant long run effect on GDP per capital and export has a positive and significant effect on GDP per capital. There is also a long run causality effect among export, FDI and GDP per capital in African countries. This implies that FDI and Export granger causes GDP per capital in the long run.