Replication Data and Code for: "Monetary Architecture, FDI Effectiveness, and Long-Run Convergence: Cross-Regional Evidence from the CFA Franc Quasi-Experiment

This deposit contains replication data and code for the paper "Monetary Architecture, FDI Effectiveness, and Long-Run Convergence: Cross-Regional Evidence from the CFA Franc Quasi-Experiment."

The paper examines the conditioning role of monetary architecture on FDI growth returns across 115 countries in Sub-Saharan Africa, Latin America, and Asia over 1970–2023. Exploiting the CFA franc framework as a quasi-natural experiment — assigned by French colonial administration and not contemporary policy choice — the study identifies the Francophone–Anglophone institutional discontinuity as the source of exogenous variation in monetary discipline. Estimation combines Pooled Mean Group error-correction models (PMG/DFE), IV/2SLS with global commodity price instruments, and System GMM, within a unified cross-regional dynamic panel framework.

Key findings: FDI is growth-neutral in Asia, conditionally growth-enhancing in Latin America, and delivers its largest effect in SSA — where Francophone economies generate FDI growth coefficients more than twice those of Anglophone economies (0.486 vs. 0.195) despite attracting statistically comparable inflows. Monetary discipline, not FDI volume, determines growth returns. The deposit supports full replication of all tables and robustness checks reported in the manuscript.

License: CC BY 4.0 Software: Stata (xtpmg, xtivreg2, xtabond2) Related publication: Under review