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
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- EP ID EP505230
- DOI 10.6007/IJARAFMS/v8-i3/4447
- Views 73
- Downloads 0
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