International Journal of Small Business and Entrepreneurship Research (IJSBER)

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Investment Climate, Domestic Private Investment, and Economic Growth in Sub-Saharan Africa

Abstract

The environment in which an enterprise operates influences its performance. This paper investigates the relationship among investment climate, private domestic investment and economic growth in 44 sub-Saharan Africa countries over the period 2004-2015. It uses eight indicators of Doing Business and a set of control variables. Although the results show a robust link among investment climate indices, domestic private investment and economic growth, however, getting electricity, tax and registering business indices had negative effects on economic growth. This finding suggests that government and policymakers should ensure a functioning and enabling investment climate, complimented by strong competitive policies and measures in order to promote private domestic investment for positive economic growth in sub-Saharan Africa countries.

Keywords: Doing Business, Domestic Investment, Investment Climate, Transaction Cost, economic growth

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This work by European American Journals is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 4.0 Unported License

 

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Email ID: editor.ijsber@ea-journals.org
Impact Factor: 7.70
Print ISSN: 2053-5821
Online ISSN: 2053-583X
DOI: https://doi.org/10.37745/ijsber.2013

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