Political Turbulence and its Impact on Foreign Direct Investment Inflows in some selected African countries

Abstract : This work examined the political turbulence and its impact on Foreign Direct Investment inflow on some selected African countries; Nigeria, Ghana, Kenya and South Africa. The aim is to determine how the political climate in Nigeria, Ghana, Kenya and South Africa affects the inflow of foreign direct investment. The modified Cobb Douglass model was the theoretical underpinning of the study since growth in FDI is likened to output and the factors that lead to growth are the investment climate variables. Using the panel ARDL model analysis, the following findings were made: Political investment climate variable (PSI) had significant positive effect on the inflow of foreign direct investment in Nigeria, Ghana, Kenya and South Africa. The result showed that Political investment climate variables (political stability and corruption index) exerted significant negative effects on the inflow of foreign direct investment into Nigeria, Ghana, Kenya and South Africa. It was recommended that; Efforts should be made by the governments of Nigeria, Ghana, Kenya and South Africa to enhance their economic fortunes by strengthening their economy through prioritizing political stability and addressing underlying causes of political unrest, corruption, weak institution and political social inequality. As well as engaging in massive production for exports which will boost economic growth and attract more foreign direct investment.