Foreign Direct Investment and Energy Poverty in Sub-Saharan Africa: Evidence from 43 Countries
Yangzi Zhou
University of Shanghai for Science and Technology, Shanghai, 200090;
Abstract:Stable, affordable energy is vital for social welfare and economic growth in developing countries. As of 2021, Sub-Saharan Africa (SSA) had only 35.56% electricity access and 19.01% clean cooking fuels usage, reflecting severe energy poverty. This study analyzes FDI's impact on SSA energy poverty using SYS-GMM on 1990-2021 data from 43 countries. Results show FDI generally alleviates energy poverty but worsens rural electrification while improving urban access. Natural resource rents amplify FDI's positive effects, with higher rents strengthening poverty reduction. The findings suggest FDI can offset resource rents' negative impacts. The study provides policy recommendations for SSA governments to enhance affordable energy access, advancing literature on the FDI-energy poverty-resource nexus.
Keywords:FDI;Energy Poverty; Natural Resources
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