Advertisement

A Critical Appraisal of Foreign Direct Investment in Africa: The Political Economy Approach

  • Bamidele Folabi Seteolu
Chapter
  • 18 Downloads
Part of the Palgrave Handbooks in IPE book series (PHIPE)

Abstract

The foreign direct investment is posed as strategy for economic recovery and growth for countries in the South. The countries undergoing neo-liberal reforms rely on foreign direct investment (FDI) for economic growth and capital transfer. This chapter adopts dependency theory to examine the implications of FDI for the ownership and control of the economies in Africa. It argues that the region does not likely transcend its economic crisis and underdevelopment through heavy dependence on foreign direct investment. It insists that the deepening of local capital is the route to autonomous economic development as against dependent, neo-colonial relations.

References

  1. Agosin, Manuel, and Roberto Machado. 2005. Foreign Investment in Developing Countries: Does It Crowd in Domestic Investment? Oxford Development Studies 33: 149–162.CrossRefGoogle Scholar
  2. Chase-Dunn, Christopher. 1998. Global Formation: Structures of the World-Economy. Lanham: Rowman and Littlefield.Google Scholar
  3. Chenery, Hollis, and Alan Strout. 1966. Foreign Assistance and Economic Development. The American Economic Review 56 (4): 679–733.Google Scholar
  4. Johansen, Søren. 1988. Statistical Analysis of Cointegration Vectors. Journal of Economic Dynamics and Control 12 (2–3): 231–254.CrossRefGoogle Scholar
  5. Mbabazi, Pamela. 2005. Which Way for Africa in the 21st Century? CODESRIA Bulletin 3 (4): 53–55.Google Scholar
  6. Mkandawire, Thandika. 2001. Thinking About Developmental States in Africa. Cambridge Journal of Economics 25 (3): 289–313.CrossRefGoogle Scholar
  7. ———. 2005. Towards a Development, Democratic and Socially Inclusive Africa Once Again. CODESRIA Bulletin 3 (4): 53–55.Google Scholar
  8. Momoh, Abubakar. 2005. In Search of a New Paradigm of World Economic System. In Nigeria & The Neo-Liberal World Economic System, ed. Abubakar Momoh. Abuja: Friedrich Ebert Stiftung.Google Scholar
  9. Olaitan, Wale. 1995. State and Economy. In The Political Economy of Nigeria Under Military Rule, 1984–1993, ed. Said Adejumobi and Abubakar Momoh. Harare: SAPES Books.Google Scholar
  10. Olukoshi, Adebayo. 1995. The Political Economy of the Structural Adjustment Programme. In The Political Economy of Nigeria Under Military Rule, 1984–1993, ed. Said Adejumobi and Abubakar Momoh. Harare: SAPES Books.Google Scholar
  11. ———. 2000. Economy & Politics in the Nigerian Transition. African Journal of Political Science 5 (2): 5–29.Google Scholar
  12. Olukoshi, Adebayo, and C. Nwoke. 1994. The Theoretical and Conceptual Underpinnings of Structural Adjustment Programme. In Structural Adjustment in West Africa, ed. Adebayo Olukoshi, R. Olaniyan, and Femi Aribisala. Ikeja: Pumark: Educational Publishers.Google Scholar
  13. Salehizadeh, Mehdi. 2007. Multinational Companies and Developing Countries: A New Relationship. Third World Quarterly 5 (1): 123–138.Google Scholar
  14. Tuner, Terisa. 1976. Multinational Corporations and the Instability of the Nigerian State. Review of African Political Economy 3 (5): 63–79.CrossRefGoogle Scholar
  15. Wallerstein, Immanuel. 1974. The Modern World-System I: Capitalist Agriculture and the Origins of the European World-Economy in the Sixteenth Century. New York: Academic Press.Google Scholar
  16. ———. 1980. The Modern World System II: Mercantilism and the Consolidation of the European World Economy, 1600–1750. New York: Academic Press.Google Scholar
  17. ———. 1989. The Modern World System III: The Second Era of Great Expansion of the Capitalist World Economy, 1730–1840. New York: Academic Press.Google Scholar

Copyright information

© The Author(s) 2020

Authors and Affiliations

  • Bamidele Folabi Seteolu
    • 1
  1. 1.Department of Political ScienceLagos State UniversityOjo, LagosNigeria

Personalised recommendations