Episode of Foreign Direct Investment Reversal—The Role of Macroeconomic Fundamentals in Sub-Saharan Africa
Journal: Journal of Industry Competition and Trade
Year: 2025

Abstract This study investigates the macroeconomic determinants of divestment, shedding light on the role of macroeconomic fundamentals. The results reveal that past divestment decisions impact current actions, highlighting the role of historical patterns. Furthermore, higher inflation rates are found to encourage divestment, likely due to risk aversion in volatile markets, in the same way as foreign interest rates. Additionally, anticipated currency depreciation drives divestment as firms seek