Influence of Foreign Direct Investment on Exchange Rate and Domestic Investment in Pre- and Post- IFRS Adoption Periods of Selected Sub-Saharan African Countries (1999-2015)
Journal Title: International Journal of Academic Research in Accounting, Finance and Management Sciences - Year 2018, Vol 8, Issue 3
Abstract
The study examined the influence of Foreign Direct Investment (FDI) on Exchange Rate (EI) and Domestic Investment (DI) in pre- and post-IFRS adoption periods of selected Sub Saharan African countries (Nigeria, Ghana and South Africa). Ex-post facto research design was adopted for the study. Secondary data were collected and analyzed using dummy Variable Regression technique. Findings revealed negative but insignificant influence of FDI on exchange rates of Nigeria and Ghana but South Africa was positive. FDI was also found to have had positive but insignificant effect on DI of Nigeria, Ghana and South Africa. However, there were no significant differences in the influence of FDI on the variables in pre- and post- IFRS adoption periods. The research recommends, amongst others, that government of these countries should ensure FDI inflows in areas where they do not have existing industries to avoid crowding influence of FDI. This could be in areas like value chain agro-allied industries. The study concludes that adoption of IFRS alone is not sufficient to attract significant FDI inflow to a nation.
Authors and Affiliations
James Ike Ugwu, Sergius Nwannebuike Udeh
Keywords
Related Articles
- EP ID EP505230
- DOI 10.6007/IJARAFMS/v8-i3/4447
- Views 65
- Downloads 0
Role of Islamic Microfinance in Poverty Alleviation in Pakistan. An Empirical Approach
After 2008 world economic crises, banks and other financial institutes move towards Islamic financing not only in Muslims countries but also in non-Muslim countries of the world. In view of this, some micro financial ins...
The Effect of Abnormal Operating Cash Flows on Unconditional Conservatism
This study attempts to find out the relationship between unconditional accounting conservatism and abnormal operating cash flows in Iranian firms. In this paper, unconditional conservatism is measured by Givoly...
Geopolitical and Geostrategic dimensions within the Black Sea Basin
A conflicted area in which the Russian and Ottoman Empires fought over in the past, now represents an important bet not just economical but also political under the conditions in which the European Union wishes to become...
The Impact Examination of the Techniques of Management Accounting on the Performance of Tile Companies of Yazd
The objective of the present research is the impact examination of management accounting measures on the performance of tile companies in Yazd. The research model is formed using the variable of management accounting tec...
Designation and Explanation of Performance Evaluation Model Metals Producers Companies in Iran Stock Exchange with an Approach to Data Envelopment Analysis
Monitoring and evaluation are concepts that has long been considered as one of the main tasks of management and economics, thus the performance evaluation of subject is not an issue that is pointed out today. But what is...