Abstract: | This article analyzes factors that drive foreign direct investment (FDI) in Africa. To do so, for the?rst time in the literature, the paper uses 5-year panel data and the system-GMM technique over the period 1970-2009. The main results are as follows: (a) larger countries attract more FDI; (b) regardless of their size, however, more open countries, politically stable countries, and countries offering higher return to investment also attract FDI; (c) FDI in?ows are persistent in Africa. This suggests that countries that manage to attract FDI today are likely to attract more FDI in the future. Bibliogr., notes, ref., sum. [Journal abstract] |