Does foreign direct investment promote institutional development in Africa?

• FDI inflows into Africa have increased sharply since the turn of millennium. Foreign direct investment (FDI) impact on institutional development in African countries. differs from developed versus developing economies. There is a positive effect economies quality and China, but slower quality. millennium, mainly due to growth countries by multinational enterprises (MNEs) While governments view this as for continent, many West raised concerns regarding investments This paper examines flows distinguishing Previous empirical studies found significant relationship between regard MNEs rewarding adopting reforms. However, little attention has been paid reverse causality, i.e. that can cause an change Using bilateral greenfield 56 during 2003−2015, we find no host aggregate country differ concerning impact's timing. In contrast, China Our results are robust alternative measures