THE DETERMINANTS AND IMPACT OF FOREIGN DIRECT INVESTMENT ON THE ECONOMIC GROWTH OF SIERRA LEONE

Abdul-Majid Abu, Hassan Jalloh, Mohamed Mustapha Abu

Abstract


This article aims to examine the factors that influence foreign direct investment (FDI) and its effects on Sierra Leone's economic expansion. Understanding the elements that draw foreign direct investment (FDI) and its overall effects on the recipient country's economy is crucial as FDI has long been acknowledged as a driver for economic development in developing nations. This study used a mixed-methods approach to examine the factors influencing foreign direct investment (FDI) in Sierra Leone by analyzing both qualitative and quantitative data. Interviews with important stakeholders, including government officials, foreign investors, and industry experts, are used to analyze factors such as political stability, institutional quality, market size, natural resources, and infrastructure. Secondary data are statistically analyzed to determine the importance of these determinants. In addition, the study evaluates how FDI affects Sierra Leone's economic expansion. Analyzing macroeconomic data like GDP growth, employment rates, trade patterns, and technology transfer are necessary for this research. The research offers a thorough understanding of the direct and indirect effects of FDI on the nation's economy by utilizing both descriptive and econometric methodologies. The results of this study have added to the body of information already available on foreign direct investment (FDI) and its effects on economic growth in developing nations, with a particular emphasis on Sierra Leone. Policymakers, government organizations, and investors will be able to create focused strategies to draw in and maximize the advantages of FDI for sustainable economic development with the help of the results, which offers insightful information.

 

JEL: F21, F23, O55, O11, C83, C18, P48

 

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Keywords


foreign direct investment, economic growth, determinants, impact, Sierra Leone

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References


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DOI: http://dx.doi.org/10.46827/ejefr.v8i3.1710

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