Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Foreign Portfolio Investments: A Study of Determinants on Selected Sub Sahara African Countries
University West, School of Business, Economics and IT.
2021 (English)Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

Developing countries face an annual financing gap of US$2.5trillion in order to achieve the United Nations 2030 Sustainable Development Agenda. Private investments are seen as indispensable in efforts to close this gap and foreign portfolio investments fall under this financing bracket. However, foreign portfolio investments flowing to Sub-Sahara Africa are relatively low and inconsistent. This paper uses international finance theory and behavioralfinance to examine the determinants of foreign portfolio investments on a sample of seventeen Sub Saharan countries using panel data from 2000 to 2019. Using the Pooled Ordinary Least Squares method, the study establishes that negative economic and institutional factors of high inflation, weak exchange rates and low political stability are significant determinants of the flow of foreign portfolio investments in Sub Sahara Africa. In view of the findings, recommendation is made for Sub Saharan governments to pursue policies that stabilize the macroeconomic and political environment. Further, a recommendation is advanced for international investment fund managers to adopt top-down approach where the analysis begins at country level and prioritize investment destinations with stable indicators.

Place, publisher, year, edition, pages
2021. , p. 71
Keywords [en]
foreign portfolio investments, determinants, Sub-Sahara Africa, sustainable development, behavioral finance
National Category
Economics
Identifiers
URN: urn:nbn:se:hv:diva-16826Local ID: EXF800OAI: oai:DiVA.org:hv-16826DiVA, id: diva2:1581930
Subject / course
Nationalekonomi
Educational program
Magister i finans
Supervisors
Examiners
Available from: 2021-08-18 Created: 2021-07-27 Last updated: 2021-08-18Bibliographically approved

Open Access in DiVA

No full text in DiVA

By organisation
School of Business, Economics and IT
Economics

Search outside of DiVA

GoogleGoogle Scholar

urn-nbn

Altmetric score

urn-nbn
Total: 193 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf