Physical infrastructures and attractiveness of private capital in Sub-Saharan African countries
by Elie Ngongang
African J. of Economic and Sustainable Development (AJESD), Vol. 4, No. 2, 2015

Abstract: Physical infrastructures are a set of interconnected structural elements whose function is to participate in attracting capital flows in order for the economy to function efficiently. They transfer capital flows that are able to ensure growth and stability. They also constitute a major challenge for growth and development. We have attempted in this paper to study the influence of physical infrastructures and financial development on foreign direct investments (FDIs) in the context of Sub-Saharan African (SSA) countries by combining two theoretical approaches (the paradox of Lucas and the external-internal factors), and by integrating the correlation between the components of capital flows. Our regressions show the importance of nonlinear effects in the explanation of the determinants of private capital. This analysis also emphasises the more important role physical infrastructures play in attracting FDIs despite perverse effects.

Online publication date: Sun, 14-Jun-2015

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the African J. of Economic and Sustainable Development (AJESD):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email