Foreign direct investment and poverty reduction in Sub-Saharan Africa

This study is to explain the relationship between foreign direct investment and poverty reduction in sub-Saharan Africa. The relation between FDI and poverty reduction in 20 Sub-Saharan African countries was explained with the Panel Data Analysis. Annual data for the period 2000-2019 were used. the study employed the estimation techniques OLS, estimation technique. With two models designed, FDI and poverty reduction, if FDI increase causes the poverty rate is fall. Second-generation unit root test Levin, Lin and Chu, and Hadri Unit Root Test has been applied and the data are stationary at the level. As a result, it is stated that the influence of FDI on poverty in the Sub-Saharan area is reliant on econometric approaches and responsive to poverty in the research. Furthermore, SSA countries should seek out innovative ways to attract more FDI and diversify it across all sectors of the economy to have a greater impact on poverty reduction and the achievement of the SDGs.