@article{Mhlanga:51632,
      recid = {51632},
      author = {Mhlanga, Nomathemba and Blalock, Garrick and Christy,  Ralph D.},
      title = {Understanding Foreign Direct Investment in the Southern  African Development Community: An Analysis Based on  Project-Level Data},
      address = {2009},
      number = {1005-2016-79098},
      series = {Contributed Paper (693)},
      pages = {29},
      year = {2009},
      abstract = {This paper uses a uniquely rich project-level dataset to  analyze determinants and trends of FDI flows to the  Southern African Development Community (SADC) region.  We  control for the source of the investment, the sector in  which the investment is undertaken, and the investment type  in addition to project size.  The results indicate market  size to have a positive impact on FDI flows under all  specifications- a result consistent with earlier studies.   Other variables are unstable depending on specification and  the subset of the data used.  Furthermore, we find no  significant differences in factors that drive FDI flows by  source country, while greenfield investments are seen to  respond more to the growth potential of the market relative  to other forms of investment.  In general, we find  macroeconomic variables to be poor at explaining  project-level FDI in the region.  The descriptive analysis  of the data points us more in the direction of the gravity  model, with factors such as colonial ties and proximity of  the investing country appearing to matter.  Limited flows  and minimal sectoral diversity, calls for enhanced  investment promotion and collaborative efforts among member  states.},
      url = {http://ageconsearch.umn.edu/record/51632},
      doi = {https://doi.org/10.22004/ag.econ.51632},
}