Growth Impact of Foreign Direct Investment in the COMESA Region: Does Infrastructure Development Matter?

Using country-level panel data, this study investigates the impact of foreign direct investment on the gross domestic product per capita in the Common Market for Eastern and Southern Africa region over the 2000- 2015 period. The estimates are generated using the one-step generalized method of a moments-difference estimator. The study found that foreign direct investment exerted a negative while quality development of infrastructure has a positive impact on economic growth in the region.