Environmental risk and growth in foreign direct investment: Is the composition of FDI in sub-Saharan Africa a speculative type?

The study explores the influence of environmental risk (macroeconomic uncertainty and sustainability risk) on inflow foreign direct investment (FDI), utilizing data from 37 economies in sub-Saharan Africa (SSA) 1996 to 2019. empirical analyses were carried out using Panel Corrected Standard Error (PCSE) estimation technique. outcomes show that higher level GDP growth, inflation financial development volatility induce more FDI inflows whilst exchange rate adversely impacts SSA. paper highlights how effectiveness governance, stable political atmosphere quality regulatory structures moderate relationship between with striking varying outcomes. Consistent pollution haven hypothesis, interactions governance effectiveness, stability, suggest sub-region is attracted loving speculative investors who prefer poorly regulated weak environment. From policy implication, findings imply composition may have moved towards type, which not necessarily be classified as pro-growth nature.