important with respect to the African countries where the population living below the poverty line is more than fifty percent of the total population. The lacks of opportunity for strengthening the financial condition of the individuals have multiple implications on the social lives of individuals. The FDI helps in the inflow of money in the economic cycle resulting in the acceleration of the economic growth as well employment opportunities.
The literature review section of the study covered various theories and models of FDI and growth of an economy. The determinants of FDI like cross border investment issues, collaborative ventures and various important issues to understand the determinants of FDI was discussed in the first section followed by the Growth Empirical Modeling where the Growth empirical approach, the Intertemporal Optimization approach and the Panel Data Analysis approach has been studied. The gaps of the models have been identified and argued in this section and the conceptual framework of the study is prepared. The main section of the paper is the chapter following Literature review. The factors determining FDI flows to Africa and threshold issues for the foreign investors have been studied here.
The approaches identified for the determinants of FDI has been aggregate econometric analysis, survey appraisal of foreign investors’ opinion and econometric study at the industry level of the study.
The study has been based on the Aggregate Econometric Approach. According to this approach the basic determinants of the inflow of FDI in a particular country or a region are dependent factors of the size and growth of market and openness of the country at the primary level and various other factors like host country investment environment, factor endowments, infrastructure and technology and country risk at the secondary level.
The research methodology studies the variations in long-run rates of the economic growth across the countries by Levine and