Fragility of FDI flows in sub-Saharan Africa region: does the paradox persist?

Abstract The circumstances of the SSA region regarding inflow foreign direct investment (FDI) present a puzzle. In spite high rate return on investment, investments keeps eluding region, and COVID-19 pandemic even perplexes flow fragility more. What factors then determine FDI flows aside from investment? Could there be more persuasive relative cost complexes? study aimed at testing effects determining that influence their impact economic development, considering period. used cross-country pooled data 30 countries collected between 2001 2020. utilized five panel estimation techniques, namely Pooled Regression, Fixed Effect (FE), Random (RE), Panel Two-Stage Least Square Differenced Generalized Moments Method (DGMM). found has significant positive development in sub-Saharan African region. It is also ascertained outflow FDI, political stability an inverse relationship with development. recommends governments host economies should hence ensure enabling framework for economies, so as to improve infrastructure, stability, institutional quality, order sufficiently encourage into make environment inviting, sustainable, beneficial investors alike.