Robust Empirical Study of the Moderating Role of Human Capital and Natural Resources on the Effects of COVID-19 and Financial Development on Foreign Direct Investment: Evidence from Sub-Saharan Africa
Obaike John Ojeka, Favour Chinazaekpere Odey, Deborah Yemisi Adebayo, Gideon Agenyi Amodu, Daniel David BubaThis study explores the moderating role of human capital and natural resources on the effects of Coronavirus Disease 2019 (COVID-19) and financial development on foreign direct investment in 42 sub-Saharan African countries. The analyses were conducted using panel data sourced from the World Bank from 1996 to 2021. The two-step system Generalised Method of Moments (GMM) was adopted as the main estimation strategy, while Driscoll and Kraay’s Nonparametric Covariance Matrix and Dynamic Threshold Estimators were employed as robustness analyses to account for dynamic threshold effects and cross-sectional dependencies in the panel. The findings show that COVID-19 acts as a shock that increases investment risk and disrupts supply chains, negatively affecting FDI inflows. In addition, financial development was identified as a positive driver of foreign investment. Furthermore, economies with human capital below a life expectancy of 52 years did not experience the beneficial effects of financial development in attracting foreign investment. Overall, human capital moderates the positive effects of financial development on FDI, whereas the moderating effect of natural resources is insignificant. Therefore, policymakers in the region should prioritise human capital formation by investing in health and education sectors to maximise the benefits of financial development on foreign direct investment inflows into sub-Saharan Africa.
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APA
Ojeka, O.J., Odey, F.C., Adebayo, D.Y., Amodu, G.A., & Buba, D.D. (2025). Robust Empirical Study of the Moderating Role of Human Capital and Natural Resources on the Effects of COVID-19 and Financial Development on Foreign Direct Investment: Evidence from Sub-Saharan Africa. İktisat Politikası Araştırmaları Dergisi, 12(1), 1-27. https://doi.org/10.26650/JEPR1345184
AMA
Ojeka O J, Odey F C, Adebayo D Y, Amodu G A, Buba D D. Robust Empirical Study of the Moderating Role of Human Capital and Natural Resources on the Effects of COVID-19 and Financial Development on Foreign Direct Investment: Evidence from Sub-Saharan Africa. İktisat Politikası Araştırmaları Dergisi. 2025;12(1):1-27. https://doi.org/10.26650/JEPR1345184
ABNT
Ojeka, O.J.; Odey, F.C.; Adebayo, D.Y.; Amodu, G.A.; Buba, D.D. Robust Empirical Study of the Moderating Role of Human Capital and Natural Resources on the Effects of COVID-19 and Financial Development on Foreign Direct Investment: Evidence from Sub-Saharan Africa. İktisat Politikası Araştırmaları Dergisi, [Publisher Location], v. 12, n. 1, p. 1-27, 2025.
Chicago: Author-Date Style
Ojeka, Obaike John, and Favour Chinazaekpere Odey and Deborah Yemisi Adebayo and Gideon Agenyi Amodu and Daniel David Buba. 2025. “Robust Empirical Study of the Moderating Role of Human Capital and Natural Resources on the Effects of COVID-19 and Financial Development on Foreign Direct Investment: Evidence from Sub-Saharan Africa.” İktisat Politikası Araştırmaları Dergisi 12, no. 1: 1-27. https://doi.org/10.26650/JEPR1345184
Chicago: Humanities Style
Ojeka, Obaike John, and Favour Chinazaekpere Odey and Deborah Yemisi Adebayo and Gideon Agenyi Amodu and Daniel David Buba. “Robust Empirical Study of the Moderating Role of Human Capital and Natural Resources on the Effects of COVID-19 and Financial Development on Foreign Direct Investment: Evidence from Sub-Saharan Africa.” İktisat Politikası Araştırmaları Dergisi 12, no. 1 (Mar. 2025): 1-27. https://doi.org/10.26650/JEPR1345184
Harvard: Australian Style
Ojeka, OJ & Odey, FC & Adebayo, DY & Amodu, GA & Buba, DD 2025, 'Robust Empirical Study of the Moderating Role of Human Capital and Natural Resources on the Effects of COVID-19 and Financial Development on Foreign Direct Investment: Evidence from Sub-Saharan Africa', İktisat Politikası Araştırmaları Dergisi, vol. 12, no. 1, pp. 1-27, viewed 10 Mar. 2025, https://doi.org/10.26650/JEPR1345184
Harvard: Author-Date Style
Ojeka, O.J. and Odey, F.C. and Adebayo, D.Y. and Amodu, G.A. and Buba, D.D. (2025) ‘Robust Empirical Study of the Moderating Role of Human Capital and Natural Resources on the Effects of COVID-19 and Financial Development on Foreign Direct Investment: Evidence from Sub-Saharan Africa’, İktisat Politikası Araştırmaları Dergisi, 12(1), pp. 1-27. https://doi.org/10.26650/JEPR1345184 (10 Mar. 2025).
MLA
Ojeka, Obaike John, and Favour Chinazaekpere Odey and Deborah Yemisi Adebayo and Gideon Agenyi Amodu and Daniel David Buba. “Robust Empirical Study of the Moderating Role of Human Capital and Natural Resources on the Effects of COVID-19 and Financial Development on Foreign Direct Investment: Evidence from Sub-Saharan Africa.” İktisat Politikası Araştırmaları Dergisi, vol. 12, no. 1, 2025, pp. 1-27. [Database Container], https://doi.org/10.26650/JEPR1345184
Vancouver
Ojeka OJ, Odey FC, Adebayo DY, Amodu GA, Buba DD. Robust Empirical Study of the Moderating Role of Human Capital and Natural Resources on the Effects of COVID-19 and Financial Development on Foreign Direct Investment: Evidence from Sub-Saharan Africa. İktisat Politikası Araştırmaları Dergisi [Internet]. 10 Mar. 2025 [cited 10 Mar. 2025];12(1):1-27. Available from: https://doi.org/10.26650/JEPR1345184 doi: 10.26650/JEPR1345184
ISNAD
Ojeka, ObaikeJohn - Odey, FavourChinazaekpere - Adebayo, DeborahYemisi - Amodu, GideonAgenyi - Buba, DanielDavid. “Robust Empirical Study of the Moderating Role of Human Capital and Natural Resources on the Effects of COVID-19 and Financial Development on Foreign Direct Investment: Evidence from Sub-Saharan Africa”. İktisat Politikası Araştırmaları Dergisi 12/1 (Mar. 2025): 1-27. https://doi.org/10.26650/JEPR1345184