African Real GDP Growth, Views from FDI, Economic Freedom and Corruption of African Countries

This paper uses the data of some African countries and G7 developed countries from 2010 to 2019 to study the impact of foreign direct investment (FDI), economic freedom and corruption on the real gross domestic product (GDP) growth rate of African countries. From the results of simple regression, we can draw a conclusion that the increase of FDI helps promote economic development, and it is significant. The results of the multiple linear regression show that FDI and economic freedom have a significant impact on the real GDP growth rate, and the results of the impact of FDI and economic freedom on the real GDP growth rate are the same as those of the simple regression, which are positive and negative, respectively. However, corruption is no longer significant for real GDP growth in the multiple linear regression. The above results suggest that African countries can increase the extent to which FDI controls economic freedom to achieve economic growth while minimizing government corruption. African policymakers can aggressively attract FDI, control the degree of economic freedom, and fight corruption.