Journal of Economics and Development Studies

Institutional, Governance and Economic Factors Influencing Foreign Direct Investment Inflows in East Africa
Dr. James Ngondi Karau, Dr. Tom K. Mburu

Abstract
East Africa exhibited the lowest in-flow of FDI when compared to other African Regions, despite the substantial policy and structural changes as well as economic integration that had been taking place in the East Africa during the study period. The main objective of this study was to examine the institutional, governance and economic factors influencing FDI Inflows in Eastern African Countries. Non-experimental panel data analysis was conducted for eight Eastern African Countries during the period 1996-2010. A oneway fixed effects least squares dummy variable model was estimated. The study found that control of corruption, political stability, rule of law, and infrastructure among others significantly influenced FDI inflows to East Africa. The findings suggested that East African governments needed to strengthen their institutional base and governance as well as improve their macroeconomic environment in order to attract more FDI

Full Text: PDF     DOI: 10.15640/jeds.v4n3a7