Analysis of India’s Non-State-Owned Enterprise Investments in Africa: An Empirical Approach

Abstract

This paper focuses on Indian foreign direct investment (FDI) flows to Africa for the period 2008 to 2018, amidst increasing state efforts to improve Indo-  African economic ties. This study pioneers the segregation of investments led by state-owned enterprises (SOEs) from non-SOEs in an empirical analysis.  The motivation is rooted in the scarcity of empirical evidence of Indian FDI in Africa, particularly by non-SOEs. The random effects model was applied on  the panel data for 2008-18 to highlight the significant causative effect of country alliances, gross domestic product (GDP) and net overseas development  assistance of host countries in attracting greater FDI from Indian enterprises. The effect of corruption levels remains less clear in a statistical sense.  These results could inform the political and economic policies of African host countries that seek financial and technical support from India.