On the other hand, barriers to attract FDIs include corruption, lack of transparency and weak governance (Schoentgen and Gille 2017; Adams 2009) (Chap. 1
Vol. 1) (Fig. 5.6). Other barriers that are often mentioned but rarely addressed,
include uncertainty due to political instability (e.g. due to war, military interventions, ethnic conflict); macroeconomic instability (e.g. due to currency crashes,
inflation, budget deficits) and lack of political transparency (Asiedu 2006;
Dupasquier and Osakwe 2006), as well as colonial legacies (Dunning 2004).
When it comes to ODA, countries with democratic regimes, high poverty and a
colonial legacy have a higher chance of attracting ODA flows (Alesina and Weder
Fig. 5.6 Positive and negative spirals determining FDI flows in Africa
Fig. 5.7 Positive and negative spirals determining ODA flows in Africa
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Vol. 1) (Fig. 5.6). Other barriers that are often mentioned but rarely addressed,
include uncertainty due to political instability (e.g. due to war, military interventions, ethnic conflict); macroeconomic instability (e.g. due to currency crashes,
inflation, budget deficits) and lack of political transparency (Asiedu 2006;
Dupasquier and Osakwe 2006), as well as colonial legacies (Dunning 2004).
When it comes to ODA, countries with democratic regimes, high poverty and a
colonial legacy have a higher chance of attracting ODA flows (Alesina and Weder
Fig. 5.6 Positive and negative spirals determining FDI flows in Africa
Fig. 5.7 Positive and negative spirals determining ODA flows in Africa
172
J. Lopes et al.