Determinants of nvestment in africa: Evidence from system GMM

The purpose of this study is to investigate the determinants of investment in Africa for a panel of fifty countries over the period 1970-2014 using panel estimation techniques. The empirical results indicate that financial development is necessary for an increase in domestic investment. In this study, it is also found that foreign direct investment, official development assistance, migrant's remittance have a positive impact on investment. The high level of corruption has negative effect on domestic investment. The results also confirm that other determinants of investment such as trade openness promote investment. On the otherhand, there are negative effects of interest rates and inflation on investment and the level of external debt also negatively impacts private investment. Keywords: Investment, Generalized Method of Moments, African Countries