Publication Date


Document Type


First Advisor

Chaoxiong, Michelle

Degree Name

M.S. (Master of Science)

Legacy Department

Department of Statistics and Actuarial Science


This paper investigates the possible factors that influence foreign direct investment inflow rate to Africa after controlling for other macroeconomic factors. Using the heterogenous Toeplitz mixed method on a sample of 23 countries from 1998 – 2020, we find evidence of the statistical significance of a relationship between the amount of trade done in Africa and the FDI inflow rate in Africa. We also find a statistical relationship between the labor force participation rate and the FDI inflow rate to Africa. Although the Fixed effect and GLM method did not find the relationship between LFP rate and FDI inflow to Africa significant, the heterogenous Toeplitz mixed method was selected because it has the smallest Bayesian Information Criteria (BIC) value.

Keywords: heterogenous Toeplitz, FDI, LFP, GLM, Mixed method.


56 pages




Northern Illinois University

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