Re–examining Bhagwati hypothesis: the case of some selected countries in Sub-Saharan Africa
Bhagwati hypothesis opines that the overall impact of foreign direct investment (FDI) on economic growth is conditioned on countries’ level of integration with the international market. We test this hypothesis for some selected countries in sub-Saharan Africa (SSA). Does this hypothesis hold given o...
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Routledge
2021
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| Online Access: | https://eprints.nottingham.ac.uk/64718/ |
| _version_ | 1848800156344909824 |
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| author | Ibrahim, Muazu Koomson, Isaac Aluko, Olufemi Adewale Opoku, Eric Evans Osei |
| author_facet | Ibrahim, Muazu Koomson, Isaac Aluko, Olufemi Adewale Opoku, Eric Evans Osei |
| author_sort | Ibrahim, Muazu |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | Bhagwati hypothesis opines that the overall impact of foreign direct investment (FDI) on economic growth is conditioned on countries’ level of integration with the international market. We test this hypothesis for some selected countries in sub-Saharan Africa (SSA). Does this hypothesis hold given our sample evidence? Yes! No! Maybe! We explain why. By invoking the sample splitting and threshold estimation technique, we find that the two measures of openness (trade openness and exports) mediate the FDI-economic growth relationship in three countries and this is an indication of complete Bhagwati hypothesis in these countries. Also, we find that, given the measure of openness, four countries exhibit incomplete Bhagwati hypothesis. Finally, we find no support for the Bhagwati hypothesis for most countries. Based on these findings, we argue that the validity of the Bhagwati hypothesis may be contingent on both country characteristics and the indicator of openness. |
| first_indexed | 2025-11-14T20:47:05Z |
| format | Article |
| id | nottingham-64718 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T20:47:05Z |
| publishDate | 2021 |
| publisher | Routledge |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-647182021-03-10T06:12:18Z https://eprints.nottingham.ac.uk/64718/ Re–examining Bhagwati hypothesis: the case of some selected countries in Sub-Saharan Africa Ibrahim, Muazu Koomson, Isaac Aluko, Olufemi Adewale Opoku, Eric Evans Osei Bhagwati hypothesis opines that the overall impact of foreign direct investment (FDI) on economic growth is conditioned on countries’ level of integration with the international market. We test this hypothesis for some selected countries in sub-Saharan Africa (SSA). Does this hypothesis hold given our sample evidence? Yes! No! Maybe! We explain why. By invoking the sample splitting and threshold estimation technique, we find that the two measures of openness (trade openness and exports) mediate the FDI-economic growth relationship in three countries and this is an indication of complete Bhagwati hypothesis in these countries. Also, we find that, given the measure of openness, four countries exhibit incomplete Bhagwati hypothesis. Finally, we find no support for the Bhagwati hypothesis for most countries. Based on these findings, we argue that the validity of the Bhagwati hypothesis may be contingent on both country characteristics and the indicator of openness. Routledge 2021-01-22 Article PeerReviewed application/pdf en cc_by https://eprints.nottingham.ac.uk/64718/1/Re%E2%80%93examining%20Bhagwati%20hypothesis%20the%20case%20of%20some%20selected%20countries%20in%20Sub-Saharan%20Africa.pdf Ibrahim, Muazu, Koomson, Isaac, Aluko, Olufemi Adewale and Opoku, Eric Evans Osei (2021) Re–examining Bhagwati hypothesis: the case of some selected countries in Sub-Saharan Africa. Transnational Corporations Review . pp. 1-12. ISSN 1918-6444 FDI; Economic Growth; Trade Openness; Exports; Threshold http://dx.doi.org/10.1080/19186444.2020.1863702 doi:10.1080/19186444.2020.1863702 doi:10.1080/19186444.2020.1863702 |
| spellingShingle | FDI; Economic Growth; Trade Openness; Exports; Threshold Ibrahim, Muazu Koomson, Isaac Aluko, Olufemi Adewale Opoku, Eric Evans Osei Re–examining Bhagwati hypothesis: the case of some selected countries in Sub-Saharan Africa |
| title | Re–examining Bhagwati hypothesis: the case of some selected countries in Sub-Saharan Africa |
| title_full | Re–examining Bhagwati hypothesis: the case of some selected countries in Sub-Saharan Africa |
| title_fullStr | Re–examining Bhagwati hypothesis: the case of some selected countries in Sub-Saharan Africa |
| title_full_unstemmed | Re–examining Bhagwati hypothesis: the case of some selected countries in Sub-Saharan Africa |
| title_short | Re–examining Bhagwati hypothesis: the case of some selected countries in Sub-Saharan Africa |
| title_sort | re–examining bhagwati hypothesis: the case of some selected countries in sub-saharan africa |
| topic | FDI; Economic Growth; Trade Openness; Exports; Threshold |
| url | https://eprints.nottingham.ac.uk/64718/ https://eprints.nottingham.ac.uk/64718/ https://eprints.nottingham.ac.uk/64718/ |