We consider two countries with initially one firm in each country and the possibility for each firm to invest in the other country or commercialize its products, and for workers to immigrate (Common Labor Market; CLM). Interestingly, when firms compete on the product market with no competition on the labor market (Goods’ Mobility; GM), they do not differentiate their qualities. However, when competition is introduced in both markets (Foreign Investment; FI) firms differentiate their products.

Os temas dos investimentos estrangeiros e seus impactos sobre o desenvolvimento econômico são centrais a todo modelo de políticas públicas. O tema investimento direto abrange regras claras e estáveis para investidores e tomadores de investimentos sobre incentivos e taxações, medidas de proteção, medidas de atração ao investidor, bem como sobre práticas de liberalização ao movimento de capitais e de pagamentos de serviços realizados, além de medidas de tributação.
 

The main purpose of this study is to study the impact of Regional Integration on the attractiveness of Foreign Direct Investment in Sub-Saharan African countries. This investigation was carried out using a panel data analysis, over a sample of 30 countries for a time-period of 23 years, from 1996 to 2018. To account for the modelling of dynamics and to establish the short-run and long-run relationships between Foreign Direct Investment, the Unrestricted Vector Autoregressive model was employed.

The study employs the autoregressive distributed lag (ARDL) approach to examine the relationship between foreign direct investment (FDI) in the mining sector on the Zimbabwe economy, while controlling for both non-mining FDI and domestic investment. Using data over the period 1988–2018, this research results show that foreign direct investment in the mining sector has a signifcant positive relationship with the country’s GDP in the long run. Mining FDI is revealed to have relatively higher efects as compared to FDI in non-mining sector and domestic investment.