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.
Downloads
References
Anholt, S. (2011). 17. Beyond the Nation Brand: The Role of Image and Identity in International Relations. A. Pike, Brands and Branding Geographies, 289.
Barney, J. B. (1986). Strategic factor markets: Expectations, luck, and business strategy. Management science, 32(10), 1231-1241.
Bartels, F. L., Alladina, S. N., & Lederer, S. (2009). Foreign direct investment in Sub-Saharan Africa: Motivating factors and policy issues. Journal of African Business, 10(2), 141-162.
Blonigen, B. A. (2005). A review of the empirical literature on FDI determinants. Atlantic Economic Journal, 33(4), 383-403.
Boulding, K. E. (1959). National images and International Systems. Journal of Conflict Resolution, 3(2), 120-131.
Búrcio, C., Silva, R., & Salgueiro, M. F. (2014). The direct and indirect impact of country personality on behavioral intentions for travelling: the full mediation effective of the affective country image. International Journal of Business Development, (3), 1-12.
Doytch, N., & Narayan, S. (2016). Does FDI influence renewable energy consumption? An analysis of sectoral FDI impact on renewable and non-renewable industrial energy consumption. Energy Economics, 54, 291-301.
Eifert, Benn, Alan Gelb, and Vijaya Ramachandran. "Business environment and comparative advantage in Africa: Evidence from the investment climate data." Banque Mondiale, Washington: DC (2005): 195-233.
Fang Jianyu. (2003). Comparative Study of FDI Theory: Literature Review. Business Research, 23.
Gillen, D., & Lall, A. (2004). Competitive advantage of low-cost carriers: some implications for airports. Journal of Air Transport Management, 10(1), 41-50.
Hymer, S. H. (1960). 1976. The international operations of national firms: A study of direct foreign investment.
Ji Naili. (2016). Review of National image Theory Research. Political Science Research, (1), 104-113.
Jiang Nan, Xu Shuozheng. (2017). Correlation Analysis between Outward Foreign Direct Investment and China's International image. Modern Economic Information.
Kalamova, M. M., & Konrad, K. A. (2010). Nation brands and foreign direct investment. Kyklos, 63(3), 400-431.
Lahimer, N. (2007). Location Theory, Business Climate and Foreign Direct Investment in Africa.
Lippmann, W. (1922). The world outside and the pictures in our heads.
Lu Yong. (2010). Review of Western FDI Theory and Its Significance. Journal of Business Times, (24), 302-308.
Nye, J. S. (1990). Soft power. Foreign policy, (80), 153-171.
Pang Zhongying. (1997). Soft Power and Others in International Relations. Strategy and Management, 2.
Pei Changhong, & Zheng Wen. (2011). National Specific Advantages: A Supplementary Interpretation of International Investment Theory. Economic Research, 11, 102-109.
Robert J. Carbaugh. (2013). International Economics (14th Ed.). Washington: Cengage Learning.
Rodríguez‐Pose, A., & Cols, G. (2017). The determinants of foreign direct investment in sub‐Saharan Africa: What role for governance?. Regional Science Policy & Practice, 9(2), 63-81.
Huntington S.P. (2002). The Clash of Civilizations and the Remaking of World Order. London: The Free Press.
Sun Liyan. (2016). Research Status and Policy Suggestions of Enterprise Business Environment. Globalization. Vol 8, 106-119.
Wei Zhi. Research on the relationship between foreign direct investment and the shaping of China's national reputation. Journal of Fujian Institute of Administration, 3 (2013): 78-86.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2021 Yuwei Chen, Professor Bitange Ndemo, Professor Martin Ogutu, Professor X. N. Iraki
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution (CC-BY) 4.0 License that allows others to share the work with an acknowledgment of the work’s authorship and initial publication in this journal.
