The Political Economy of Foreign Direct Investment and Foreign Aid in Sub-Saharan Africa: An Empirical Approach

Published: 22 September 2018| Version 1 | DOI: 10.17632/y52x25y526.1
Contributors:
Jean-Paul Azam,
Claire Galez-Davis

Description

Dataset used for our paper "The Political Economy of Foreign Direct Investment and Foreign Aid in Sub-Saharan Africa: An Empirical Approach". Abstract: Foreign financial flows to Sub-Saharan Africa have soared in the past decade, notably Foreign Direct Investment (FDI) and Official Development Assistance (ODA). The aim of this paper is to evaluate their impacts on the recipient economies' growth. To do so, a two-stage least square analysis is carried out on an unbalanced panel of 41 Sub-Saharan African countries observed from 1980 to 2012. The instrumental strategy is drawn from the political and economic relationships between donors and recipients. The identifying hypothesis is that certain characteristics of a country's main ODA donors, such as GDP per capita, can only affect growth in that country through ODA and FDI. FDI is found to have a positive and significant effect on GDP per capita growth, whereas ODA has no impact.

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Note: this dataset contains many variables which ended up not being used in the final version of the paper. The datasets used in the final version are marked with a circle. To create this dataset from scratch, it is necessary to download primary data from: - * the World Bank (accessed on January 15th, 2015 using the 'wbopendata' tool on Stata) - * the Quality of Government institute data (Dahlberg et al., 2015), accessed on May 17th 2015 and available from http://qog.pol.gu.se/data - * the UCDP/PRIO Armed Conflict Dataset (Gleditsch et al., 2002). Version 4-2014a, last presented by Themnér and Wallensteen (2014), accessed on April, 27th 2015 and available from http://www.pcr.uu.se/research/ucdp/datasets/ucdp_prio_armed_conflict_dataset/ - * EM-DAT, The International Disaster Database (Guha-Sapir, Below and Hoyois, 2015), accessed on April, 27th 2015 and available from http://emdat.be/database - * the website 'L'aménagement linguistique dans le monde' (Leclerc, 2015), accessed on April 28th, 2015 from http://www.axl.cefan.ulaval.ca - * the OECD, accessed on June 7th 2015 and available from http://stats.oecd.org/ - the Penn World Tables (Heston, Summers and Haten, 2012). Version 7.1, accessed on May, 3rd 2015 and available from http://www.rug.nl/research/ggdc/\\data/pwt/pwt-7.1 - the CSP data, available from http://www.systemicpeace.org/inscrdata.html, for 1) the Polity IV dataset (Marshall, Jaggers and Gurr, 2013), accessed on April 28th, 2015 and 2) the Coup data (Marshall and Marshall, 2015) accessed on January 27th, 2016 - the IMF Balance of Payment data, accessed on February 18th, 2016 and available from https://www.imf.org/en/Data - data from the paper by Gallup, Sachs and Mellinger (1999), available at https://sites.hks.harvard.edu/cid/ciddata/ciddata.html and accessed on March 4th, 2015 - data from the paper by Sala-I-Martin, Doppelhofer and Miller (2004), accessed on October 23rd, 2014 and available from \\ https://www.aeaweb.org/articles.php?doi=10.1257/0002828042002570 The Stata dofiles that create the present dataset from these various data sources are available upon request. The bibliography details are also available upon request (the space allowed here was not sufficient to include them all).

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Social Sciences

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