Foreign Direct Investment in Africa: The Role of Natural Resources, Market Size, Government Policy, Institutions and Political Instability

Africa, corruption, foreign direct investment, institutions, natural resources, political instability

Democracy, Foreign Direct Investment and Natural Resources

Existing studies assume that the impact of democracy on FDI is the same for re- source exporting and non-resource exporting countries. This paper examines whether natural resources alter the relationship between FDI and democracy. We estimate a linear dynamic panel-data model using data from 112 developing countries over the period 1982-2007, and we .nd that there is some critical value of the share of miner- als and oil in total exports below which democracy enhances FDI, and above which democracy reduces FDI. We identify 90 countries where an expansion of democracy may enhance FDI and 22 countries where an increase in democratization may reduce FDI.Democracy, Foreign Direct Investment, Natural Resources.

On the Impact of Foreign Aid in Education on Growth: How Relevant is the Heterogeneity of Aid Flows and the Heterogeneity of Aid Recipients?

This paper examines whether foreign aid in education has a significant effect on growth. We take into consideration the heterogeneous nature of aid as well as the heterogeneity of aid recipients—we disaggregate the aid data into primary, secondary and higher education, and run separate regressions for low income and middle income countries. We find that the effect of aid varies by income as well as by the type of aid. Thus our results underscore the importance of the heterogeneity of aid flows as well as the heterogeneity of recipient countries when analyzing the effect of aid on growth.Education, Foreign Aid, Growth.

The Effect of the Liberalization of Investment Policies on Employment and Investment of Multinational Corporations in Africa

There has been a remarkable shift in the attitudes towards globalization. Specifically, the discussion among academics and policymakers has shifted from whether globalization should be encouraged to how countries can position themselves to benefit from globalization. This paper focuses on one aspect of globalization – the liberalization of investment policies – and analyzes its impact on employment and investments by multinational corporations in Africa. We use data for 33 countries over the period 1984-2003 and we employ a dynamic panel estimator for our analysis. There are two major findings. First, liberalization has a significant and positive effect on investment. Second, liberalization does not have a direct impact on multinational employment – the effect is indirect: liberalization stimulates multinational investments which in turn increases multinational employment. By increasing investment and employment from multinational firms, these liberalization programs contribute to poverty alleviation.Africa, employment, foreign direct investment, U.S. multinationals.

Is the World Flat? Differential Regulation of Domestic and Foreign-Owned Firms

This paper examines the determinants of differential employment restrictions applied to foreign vs. domestic firms. We develop a model of employment regulation and test its implications using data from the World Bank's World Business Environment Survey, conducted in 1999/2000. We find that while democratic accountability, corruption, and British legal origin reduce the extent of government intervention in firms' employment decision, they give greater advantage to domestic relative to foreign investors. Rule of law, on the other hand, has a more even effect. Better investment opportunities in the country enhance the government's bargaining power vis-à-vis investors and increase employment intervention, especially in foreign firms engaged in less tradable sectors. We also identify a host of other factors that influence employment restrictions, though none of them entail a differential impact on foreign investors. We find that after controlling for other factors, foreign investors in Latin America face a greater regulatory disadvantage vis-à-vis locals compared to other regions of the world, though this is partly counterbalanced by other effects captured in the model.Employment Regulation, Foreign Direct Investment, Political Economy.

Shoot and plantlet regeneration from meristems of Dioscorea rotundata Poir and Dioscorea alata L.

In vitro culture media capable of regenerating moderate to high shoots and/or plantlets from meristems of two yam species - Dioscorea rotundata and Dioscorea alata within comparable duration of 10 weeks as commonly obtained in other monocots and root and tuber crops were investigated. The study comprised 125 phytohormone combinations investigated in three factorial experiments each consisting of an auxin (NAA) and a cytokinin (BAP or kinetin), or two cytokinins only. The frequency of direct plantlet regeneration, though significantly (P < 0.05) higher for D. alata than for D. rotundata, was low and ranged from 0 to 10% at 3 weeks after culture (WAC) and 0 to 35% at 8 WAC. At 8 WAC, shoot regeneration of 42-75% was obtained in D. rotundata in MS medium supplemented with 0.1 M NAA + 0.20 M BAP, and shoot + plantlet regeneration of 60-82% obtained in media containing 0.05 M + 0.20 M BAP or 0.46 M BAP + 0.50 M kinetin in D. alata. Both shoot induction and plantlet regeneration were species-dependent. Induced shoots were successfully rooted in MS medium within 3 to 4 weeks, bringing time taken for plantlet regeneration to 11 to 12 weeks. Regenerants were morphologically similar to the mother plants. Results of the present study will facilitate regeneration of plantlets via meristem in D. rotundata and D. alata

Does Foreign Aid Mitigate the Adverse Effect of Expropriation Risk on Foreign Direct Investment?

We construct a model of FDI, risk and aid, where a country loses access to FDI and aid if the country expropriates FDI. We show that: (i) The threat of expropri- ation leads to under-investment; (ii) The optimal level of FDI decreases as the risk of expropriation rises; and (iii) Under certain conditions, aid mitigates the adverse e¤ect of expropriation risk on FDI. The empirical analysis employs data for 35 low- income countries and 28 countries in Sub-Saharan Africa, over the period 1983-2004. We ?nd that risk has a negative e¤ect on FDI, aid mitigates the adverse effect of risk on FDI, and that bilateral and multilateral aid are roughly equivalent at achieving these results. We also provide an estimate of the level of aid that would eliminate expropriation risk, and ?nd that for low-income countries, the amount of aid would need to at least double in order for aid to completely offset the effect of risk.Expropriation, Foreign Aid, FDI, Risk, Sub-Saharan Africa.

Development of micropropagation system for yam (Dioscorea spp.) using somatic embryogenesis

Inadequate availability of disease-free planting materials remains a major constraint to yam production. The tissue culture technique has been used to regenerate disease-free plantlets from pre-formed, heattreated meristems followed by micropropagation. This procedure, however, has a low multiplication ratio with an average of 1: 4 every eight weeks. Embryo production from somatic cells (somatic embryogenesis, SE) is a system in which each somatic cell can regenerate a complete plantlet. However, previous reports show low SE induction frequencies and significant variations in success rates among different genotypes while hardly any report exist for improved varieties that farmers desire, especially in Nigeria. Studies were carried out to evaluate the effects of different plant growth regulators (PGRs) on induction of somatic embryogenesis of the following genotypes: one improved Dioscorea alata (TDa 291) and three improved (TDr 95/19177, TDr 89/2665, TDr 95/18544) and one landrace (Obioturugo) of Dioscorea rotundata. Leaf, stem, and axillary bud explants were cultured in MS basal medium containing fifteen treatment combinations of 2,4-Dichlorophenoxyacetic acid (2,4-D), Naphthaleneacetic acid (NAA), Benzylaminopurine (BAP), Picloram, and Uniconazole-P (UP). The genotype TDr 95/19177 was tested for SE in Temorary Immersion Bioreactor System (TIBS). The incidence of induction of callus formation and plantlet regeneration from the three explants were recorded. Embryogenic callus induction was highest (87%) from axillary buds cultured on modified MS + 2 mg/l of 2,4-D + 1 mg/l of NAA while 1 mg/l of BAP + 9. 9 mg/l of UP had the highest percentage plantlet regeneration of 50% in TDr 95/18544 and an average of 37% across genotypes at a mean of 5 plantlets per explant. The genotype TDr 95/19177 was successfully regenerated via indirect somatic embryogenesis in the SETIS Type Temporary Immersion Bioreactor System