RUDN Journal of EconomicsRUDN Journal of EconomicsВестник Российского университета дружбы народов. Серия: Экономика2313-23292408-8986Peoples’ Friendship University of Russia named after Patrice Lumumba (RUDN University)3856410.22363/2313-2329-2024-32-1-88-112PEVXNUINTERNATIONAL CAPITAL MOVEMENTМЕЖДУНАРОДНОЕ ДВИЖЕНИЕ КАПИТАЛАResearch ArticleImpact of institutional environment on foreign direct investment inflow to the manufacturing sector in EthiopiaВлияние институциональной среды на приток прямых иностранных инвестиций в производственный сектор Эфиопииhttps://orcid.org/0009-0009-4501-3992WorkuMengistu W.ВоркуМенгисто Валелей

PhD Candidate

аспирант, Высшая школа бизнес-лидерства

newplc34@gmail.comhttps://orcid.org/0000-0003-0578-576XMucharaBinganidzoМухараБинганидзо

Head of Quality Assurance & Enhancement; Senior Lecturer (Economics)

доктор наук, руководитель отдела обеспечения и повышения качества; cтарший преподаватель (экономика), Высшая школа бизнес-лидерства

Muchab@unisa.ac.zaUniversity of South AfricaУниверситет Южной Африки, Высшая школа бизнес-лидерства15032024321THE WORLD ECONOMY IN THE CONTEXT OF GLOBAL TRANSFORMATIONМировая экономика в условиях глобальной трансформации8811202042024Copyright ©; 2024, Worku M.W., Muchara B.Copyright ©; 2024, Ворку М.В., Мухара Б.2024Worku M.W., Muchara B.Ворку М.В., Мухара Б.https://creativecommons.org/licenses/by-nc/4.0https://journals.rudn.ru/economics/article/view/38564

The purpose of the research presented in the article is to study the impact of the institutional environment on the inflow of foreign direct investment (FDI) into the Ethiopian manufacturing sector. The study uses time series data from 1992 to 2021. using an autoregressive approach. The results show that the development of a right-wing society, along with political stability and a reduction in crime, are two factors of the institutional environment that have a positive and significant impact on the inflow of FDI into the manufacturing sector in the long term. However, the effectiveness of the government had a negative effect. In the short term, the rule of law, control over corruption and the quality of regulation have become factors in the institutional environment that have significantly influenced FDI inflows into the Ethiopian manufacturing sector. The study shows that an enabling institutional environment increases FDI inflows into Ethiopia’s manufacturing sector in both the long and short term. Therefore, it is extremely important for Ethiopia to improve the efficiency of public institutions and strengthen the domestic legal framework and legislation. This will help reduce political instability and promote greater accountability and transparency among government officials, thereby attracting more foreign direct investment from developed and developing countries. Moreover, due to its strategically preferred location in the Horn of Africa and the huge number of available and trained workforce, as well as the improvement of the institutional environment suitable for business, Ethiopia is very attractive as an investment destination.

Целью представленного исследования является изучение влияния институциональной среды на приток прямых иностранных инвестиций (ПИИ) в производственный сектор Эфиопии. В исследовании используются данные временных рядов с 1992 по 2021 г. с применением авторегрессионного подхода. Результаты показывают, что развитие правового общества, наряду с политической стабильностью и снижением преступности, являются двумя факторами институциональной среды, которые оказывают положительное и значительное влияние на приток ПИИ в производственный сектор в долгосрочной перспективе. Однако эффективность правительства имела отрицательный эффект. В краткосрочной перспективе верховенство закона, контроль над коррупцией и качество регулирования стали факторами институциональной среды, которые существенно повлияли на приток ПИИ в производственный сектор Эфиопии. Исследование показывает, что благоприятная институциональная среда увеличивает приток ПИИ в производственный сектор Эфиопии как в долгосрочной, так и в краткосрочной перспективе. Поэтому для Эфиопии крайне важно повысить эффективность государственных учреждений и укрепить внутреннюю правовую базу и законодательство. Это поможет снизить политическую нестабильность и способствовать повышению подотчетности и прозрачности среди государственных служащих, тем самым привлекая больше прямых иностранных инвестиций из развитых и развивающихся стран. Более того, благодаря своему стратегически предпочтительному расположению на Африканском Роге и огромному количеству доступной и обучаемой рабочей силы, а также улучшению институциональной среды, подходящей для бизнеса, Эфиопия очень привлекательна как направление для инвестиций.

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