NEXUS BETWEEN FOREIGN CAPITAL INFLOW, POVERTY AND ECONOMIC GROWTH AMONG SELECTED WEST AFRICA COUNTRIES: A SECTORAL APPROACH
DOI:
https://doi.org/10.51200/mjbe.v11i1.5289Keywords:
foreign capital inflow, poverty, economic growth, Random Effect Model, Fixed Effect ModelAbstract
In the selected West African nations, issues concerning foreign capital inflows, poverty, and economic growth are complex and multifaceted. These issues encompass reliance on commodity exports, fluctuations in foreign capital inflows, debt burdens, corruption, poor governance, and lack of diversification. Therefore, understanding the nature of these challenges is both relevant and imperative. Consequently, this paper investigates the relationship between foreign capital inflow, poverty, and economic growth in the chosen West African countries. To estimate the model, the study employs a Random Panel model. The findings reveal, among other things, that foreign capital inflows have a beneficial impact on the agricultural, health, and educational sectors in the selected West African nations. It is recommended that in order to support sustainable development and reduce reliance on external expertise, foreign investors should be encouraged to engage in technology sharing, skills transfer, and local capacity building, particularly in the agricultural and industrial sectors. Additionally, incentives should be tailored to attract foreign investment in sectors where these nations excel. This may include measures such as land access, tax breaks, and other sector-specific advantages.
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