Paper Title
Determinants Of Foreign Direct Investment: New Granger Causality Evidence From Asian And African Economies

Abstract
This paper analyzed drivers of foreign direct investments (FDI) to Asian and African economies using a panel dataset from 1980 to 2013. This study used Granger causality test, under vector error correction modeling (VECM) to test for causality among the variables. While the drivers of FDI inflows was measured using five dimensions (trade openness, macroeconomic condition, market size, infrastructural development and monetary union) proposed by Anyanwu (2012), the dependent variable, FDI inflows, was proxied by the ratio of FDI flows to gross domestic product (GDP). Findings based on the study revealed that variables manifesting the determinants of FDI inflows positively affected FDI into these continents. Specifically, trade openness, macroeconomic condition, infrastructural development, and monetary union have positive and significant effect on FDI inflows to Asian economies; while there is no significant relationship between FDI inflows and market size to the continent during the study period. On the other hand, trade openness, macroeconomic condition, market size and infrastructural development have positive and significant effect on FDI inflows to African economies; while there is no significant relationship between FDI inflows and monetary union to the African continent during the study period. Theoretically, this model provides predictive implications on improved FDI inflows, given the activities of critical variables manifesting determinants of FDI inflows. key words- Foreign Direct Investment, FDI Determinants, Granger Causality Test, VECM, Africa, Asia