The Impact of Terrorism Activities As Threat To Unstable Economy on Foreign Direct Investments FDI: A Panel Study of 33 Sub-Saharan African Countries



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Submitted Jul 19, 2020
Published Aug 5, 2020
10.24018/ejbmr.2020.5.4.443

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The study aims to assess the impact of terrorism activities on foreign direct investment in a panel study of 33 Sub-Saharan African countries. In order to achieve the objective of the study, it employed panel data methodologies such as GLS random-effect, ML random-effect, fixed effect regression, generalized linear model and multivariate regression methods to enable it make statistically and robust inference or conclusion. However, the study found that there is an inverse linear relationship or impact on foreign direct investment in Sub-Saharan Africa. Also, the study found out that economic growth and foreign direct investment are inversely related and corruption control has positive and direct linear relationship with foreign direct investment. As the study focused on the linear relationship of terrorism activities and foreign direct investments, it recommends further studies into the subject-matter by employing the non-linear approaches to ascertain the non-linear relationship between the two.

Keywords: Foreign Direct Investment; Terrorism activities; Political instability; Sub-Saharan Africa

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