The Effects of Sociopolitical Instability, and Macroeconomic Uncertainty on Private Investment: Evidence from Sub Saharan African Countries
| dc.contributor.advisor | Hussein, Abdurezack( PhD) | |
| dc.contributor.author | Debebe, Buzayehu | |
| dc.date.accessioned | 2021-11-10T07:09:57Z | |
| dc.date.accessioned | 2023-11-04T10:31:50Z | |
| dc.date.available | 2021-11-10T07:09:57Z | |
| dc.date.available | 2023-11-04T10:31:50Z | |
| dc.date.issued | 2021-06 | |
| dc.description.abstract | This study attempts to examine the effects of sociopolitical instability, and macroeconomic volatility on private investment, for a panel of 26 SSA countries for the period 1986-15. To uncover robust results this study exploited the within group, forward orthogonal deviation (FOD) and system GMM estimators. Results from the three dynamic panel models estimation shows that, sociopolitical instability is found to have pronounced significant positive effects on private investment compared to macroeconomic volatility and standard macroeconomic culprits. Moreover, macroeconomic uncertainty captured by unconditional standard deviations of exchange rate turns out with deleterious effect on private investment in SSA, and significant in all models. However, the unconditional standard deviation of inflation rate seems insignificant in explaining private investment fluctuations in the region. Corroborating the accelerator effects of output, real GDP showed positive and significant impact on private investment in SSA, while credit to the private sector, public investment, and external debt service found to have insignificant effects in SSA and the results are persistent across all the three models. We argued that sociopolitical stability mainly characterized by: stable government, abetment of conflicts (internal, external, ethnic and religious), improved socioeconomic conditions and investment profile, lesser corruption, and heightening of institutional and bureaucracy quality promotes private investment in SSA. Further, our empirical finding asserts limited production capacity associated with heavy dependency on imported intermediate and capital goods signifies the deterring effects of exchange rate volatility. And thus SSA should promote strategies on the diversification of production activities and thereby make them less dependent to imported investment goods. | en_US |
| dc.identifier.uri | http://etd.aau.edu.et/handle/123456789/28582 | |
| dc.language.iso | en | en_US |
| dc.publisher | A.A.U | en_US |
| dc.subject | Private investment, sociopolitical stability, macroeconomic uncertainty, SSA Countries, within fixed effect estimator, FOD and system GMM | en_US |
| dc.title | The Effects of Sociopolitical Instability, and Macroeconomic Uncertainty on Private Investment: Evidence from Sub Saharan African Countries | en_US |
| dc.type | Thesis | en_US |