Future Business Journal (Oct 2022)
The status quo of research in sustainable FDI: exploring the theoretical agenda and policy inferences in West and Central Africa
Abstract
Abstract Purpose This paper investigates the status quo in the literature on sustainable foreign direct investment "FDI" in West and Central Africa. It is believed that utilizing the FDI Qualities Policy Toolkit developed by the Organisation for Economic Co-operation and Development "OECD" will help identify which policies are acknowledged today and the ones that may need particular attention from academia and policymakers. Design/methodology/approach The paper utilizes a literature triangulation of FDI, sustainability, and economic development theories to extract the seed of a narrative helping to capture the current theoretical agenda and policy implications around the phenomenon of sustainable FDI in West and Central Africa. We selected and scrutinized (N = 53) articles published in various academic journals between January 2019 and March 2022 and investigating issues around sustainable FDI. The OECD framework later assisted in mapping today's theoretical agenda and policy inferences related to sustainable FDI in the region. Findings It is acknowledged that there is an ongoing theoretical discussion informing on policy implications around the subject of sustainable FDI in West and Central Africa. It seems to be a consensus about the role of FDI's quality in enhancing sustainable regional growth. However, the use of the taxonomy has shown a clear focus on macroeconomic and ecological determinants reinforced through the OECD-defined policy dimensions of technical and financial support and international agreements and standards. The review allowed the perception of a theoretical gap in sustainability outcomes around the subjects of social justice in general and gender diversity in particular. It is recommended that academia and policymakers emphasize FDI theories and policies around the OECD framework of governance and domestic regulations. Originality/value The paper informs through a literature-based review on determinants that academia and policymakers need to give particular attention to for better addressing all subjects around sustainable FDI in West and Central Africa. The paper proactively advises on specific phenomena that should be considered to avoid the fulfillment of the hypothesis of an "African sustainable growth tragedy."
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