Document Type
Original Article
Subject Areas
African Trade
Keywords
Internationalization, Intra-trade, Private capital flows, Finance-growth nexus
Abstract
This study examines the role of foreign direct investment (FDI) in the relationship between intra-African trade and economic growth. Employing a sample of 54 African countries over the period 2004-2022 and a two-step System Generalized Methods of Moments, the study finds that FDI inflows have a positive effect on intra-African trade, which in turn positively affects economic growth; however, FDI has a negative independent effect on growth. The study further provides evidence to support the hypothesis that FDI magnifies the positive effect of intra-African trade on economic growth, by establishing that intra-African trade and FDI are complements in enhancing economic growth.
How to Cite This Article
Kyereboah-Coleman, Anthony; Abor, Joshua Yindenaba; and Ofori-Sasu, Daniel
(2025)
"Intra-African Trade and Economic Growth in Africa: The Role of Foreign Direct Investment,"
Journal of African Trade: Vol. 12:
Iss.
1, Article 5.
Receive Date
19/10/2023
Accept Date
31/08/2025
Publication Date
2025
