RELATIONSHIP BETWEEN NATIONAL IMAGE AND FOREIGN DIRECT INVESTMENT AMONG SUB-SAHARAN AFRICA COUNTRIES
DOI:
https://doi.org/10.47941/ijf.704Keywords:
National Image, FDI, International Business, Sub-Saharan Africa CountriesAbstract
Purpose: The purpose of this study was to establish the relationship between National Image and FDI among Sub-Saharan Africa nations.
Methodology: This study was based on positivism approach and study used a descriptive cross-sectional design. The population of the study was all of SSA 46 countries and a census survey of all the countries in SSA was done hence no sampling was done. Both primary and secondary data were used in the study. A structured research questionnaire was used in collecting primary data. The questionnaire was administered to the Heads of Foreign Missions of each of the 46 SSA countries in Kenya. Secondary data was used for data on FDI obtained from the UNCTAD publications. Data was then analyzed using descriptive statistics and regression analysis. Testing of hypothesis was done through Adjusted R2 F-ratio test (Analysis of Variance) and regression of the coefficient.
Results: The results revealed that the influence of national image on FDI among SSA countries was positive and statistically significant. The results further reveals that 71.8% of changes in FDI is as a result of the national image aspects selected in this study while the remaining 28.2% are elucidated by other aspects not pondered in this model. Independent indicators defining national image had mixed results. Results showed that political dimension influenced FDI positively but it was not statistically significant (B= .236, t= 1.490, sig= .146). Economic dimension influenced FDI positively but it was not statistically significant (B= .104, t= .461, sig= .648). Social dimension of national image influenced FDI positively and it was statistically significant (B= .367, t= 2.368, sig= .024). Technological dimension influenced FDI positively and it was statistically significant (B= .859, t= 5.141, sig= .000).
Unique contribution to theory, practice and policy: The findings of this study support the need for Sub-Saharan Africa countries to create a national image individually as countries and as a block as this will go a long way in attracting FDI which will eventually translate to economic development. It is therefore prudent for countries in Sub-Saharan Africa to understand the national image dimensions in the regional context in order to carry out frequent analysis and develop strategic approaches relevant to their FDI competitiveness.
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Copyright (c) 2021 Yuwei Chen, Professor Bitange Ndemo, Professor Martin Ogutu, Professor X. N. Iraki
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