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Assessing the Foreign Direct Investment Theory as it Applies into Guinea's Mining Sector

<p> The purpose of the study was to assess the validity of the foreign direct investment (FDI) theory as it applies to Guinea&rsquo;s mining sector by investigating the extent to which the investors&rsquo; perceptions of Guinea&rsquo;s actual FDI features predict the degree to which foreign companies invest into the country&rsquo;s mining sector. In fact, through the literature, it was established that there was a significant correlation between the amount of FDI flows and host country&rsquo;s FDI features. The literature revealed also that the FDI theory was an efficient FDI flows model for the manufacturing and the trading sector. However, it was not formerly established that the FDI features applied also to the mining sector. Thus policymakers lacked a FDI model to enact attractive mining investment profile and thereby to attract more FDI flows into the mining sector. As a consequence, many worlds&rsquo; rich mineral countries such as Guinea and Sierra Leone failed to attract significant FDI flows and hereby missed the opportunities to address poverty and literacy issues that should be induced by FDI flows. The aim of this quantitative study was to investigate the extent to which the features of the FDI theory predict the FDI flows in the mining sector. To complete the study mail questionnaires were sent to the multinational mining subsidiaries&rsquo; managers in order to collect their perceptions about the FDI flows determinants. The multiple linear regression approach was used to analyze data. Results from this study showed that the features of the FDI theory significantly predicted the FDI dollar flow into the Guinea&rsquo;s mining sector.</p>
Date27 January 2017
CreatorsBalde, Mamadou Yero
PublisherNorthcentral University
Detected LanguageEnglish

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