Influence of Quality Education on FDI Inflows in Subs-Saharan Africa: A Theoretical and Empirical Research




Quality Education, Sub-Saharan Africa, Fixed Effect Model, Human Capital Theory, FDI inflow


The non-traditional influences of Foreign Direct Investment (FDI) are increasingly gaining attention in international business studies; however, the empirical evidence of these influences is still scant. Using human capital theory within the context of the national competitive framework, the study reported in this paper considers the progress towards achieving Quality education as a likely influence of FDI inflows in Sub-Saharan Africa (SSA). The paper employs a panel data research design and conducts fixed effects estimations. The analysis categorizes FDI flows into global FDI, FDI from developed countries, and FDI from developing countries to SSA. Thus, the paper is centred around three research questions: (1) How does progress toward quality education influence global FDI inflows? (2) How does progress towards quality education influence FDI inflows from developed and (3) from developing countries? The analysis mainly utilizes a bespoke dataset from the United Nations Conference on Trade and Development (UNCTAD) and data from trustworthy databases such as UNCTADSTAT and the World Development Indicators (WDI). The results support the claim of the increasing importance of non-traditional influences of FDI flow. Quality Education significantly influenced FDI inflows from the globe and developing countries to SSA. This research provides further evidence that the national competitive framework can thoroughly explain the factors that have different significant powers in influencing FDI flows to SSA from developed and developing countries. The study is highly policy-relevant because it examines the effects of the degree of attainment of specific UN Sustainable Development Goals (quality education) on inward FDI performance. It, therefore, shows the benefits of SSA countries investing in the SDGs for the policy goal of attracting more considerable amounts of inward FDI.

Author Biography

Pumela Msweli, University of South Africa Graduate Business School and Leadership, in Midrand, South Africa

Qualifications: Bachelor of Science from WITS (Majoring in Genetics and Microbiology), an MBA from the University of Exeter (passed with Distinction), an MPhil in Development Finance from the University of Stellenbosch and a Ph.D. (Exeter University, UK).

My academic experience spans over 22 years across the regions of Sub-Saharan Africa, Canada, the UK, and Europe. My well-developed conceptual, analytical and problem-solving skills have been demonstrated during the past 22 years working in different academic settings, implementing learner-centered educational experiences.

I have produced over 60 scholarly outputs, including books, book chapters, peer-reviewed journal papers and papers in conference proceedings. In addition to that, I have successfully supervised 70 postgraduate students (17 Doctoral students, 31 Masters and 22 Honours students).

As a Professor of Corporate Governance, I introduced technology-based real-time assessment techniques to improve the throughput of postgraduate students. I have introduced several horizontal diversification programmes to generate third and fourth income streams in a few universities I worked for. The scholarly outputs of some of my postgraduate students and my own published works have been cited by scholars worldwide.

I am currently the Executive Dean and CEO at Unisa Graduate School of Business Leadership (SBL)