Theoretical Economics Letters, 2016, 6, 798-807 Published Online August 2016 in SciRes. http://www.scirp.org/journal/tel http://dx.doi.org/10.4236/tel.2016.64084 How to cite this paper: Jugurnath, B., Chuckun, N. and Fauzel, S. (2016) Foreign Direct Investment & Economic Growth in Sub-Saharan Africa: An Empirical Study. Theoretical Economics Letters, 6, 798-807. http://dx.doi.org/10.4236/tel.2016.64084 Foreign Direct Investment & Economic Growth in Sub-Saharan Africa: An Empirical Study Bhavish Jugurnath * , Nitisha Chuckun, Sheereen Fauzel Department of Accounting and Finance, Faculty of Law and Management, University of Mauritius, Réduit, Mauritius Received 5 May 2016; accepted 21 August 2016; published 24 August 2016 Copyright © 2016 by authors and Scientific Research Publishing Inc. This work is licensed under the Creative Commons Attribution International License (CC BY). http://creativecommons.org/licenses/by/4.0/ Abstract This study has made an attempt to investigate and analyze empirically the impact of Foreign Di- rect Investment (FDI) on the economic growth for a panel of 32 Sub-Saharan African countries during the period 2008-2014. Both static panel regression techniques and dynamic panel esti- mates were employed to assess the causal link of our regressors, namely, FDI, trade openness, domestic investment, working population size and the effects of the 2009 European debt crisis on our dependent variable, Gross Domestic Product (GDP) per capita. The evidence from the statis- tical analysis suggests that aggregated FDI does have a positive and significant impact on econom- ic growth and is thus consistent with the literature, especially with respect to developing countries. Based on static random effects, the inclusion of the 2009 Euro zone crisis did not diverge the re- sults despite its negative impact on economic growth. The contribution of FDI is observed to be relatively higher than domestic investment. Keywords Foreign Direct Investment (FDI), Economic Growth, FE & RE Model, GMM Estimates 1. Introduction Sub-Saharan Africa (SSA) is, geographically, the area of the African continent that lies in the south of the Saha- ra Desert, with a population exceeding 930 million residents from the 48 countries of the region. These countries are specifically varied, both in size and economic history, with many small countries and some giants such as Nigeria and South Africa. One of the remarkable features of globalization in the 1990s was the flow of private * Corresponding author.