The Effect of FDI and Financial Development Markets on Sub-Sahara African Economy: An Empirical Study Based on VAR Model

Abstract

This paper investigates the effect of FDI and financial development markets on GDP growth in 35 Sub-Sahara African (SSA) economies over the period 1980-2020. The results in the Vector Autoregression (VAR) Models indicate that FDI has no significant impact on the GDP growth of SSA. However, two variables of financial development have got positive significant effect on the economic growth of SSA. Moreover, the result of the granger causality test show that financial development have significant causality effects on the economic growth of SSA.