Authors : Musa Murtala and Sallahuddin Hassan
Abstract: This study examines the role of Foreign Direct Investment (FDI) on real GDP per capita convergence among lower-middle income West African countries. Employing panel unit root (Im, Pesaran and Shin) and Pedroni panel cointegration model on annual data spanning 1986-2013, the study seeks to establish whether there exists a long run relationship between FDI and income convergence as measured by annual deviations of economies from the group averages. Results emanating from the study indicate that there is no long run relationship between FDI and per capita income convergence among the countries.
Musa Murtala and Sallahuddin Hassan, 2015. Income Convergence and FDI: Evidence from Lower-Middle Income West African Economies. International Business Management, 9: 706-711.