Foreign Direct Investment (FDI) on Economic Growth: Congo Brazzaville’s Case
[1]
Mouele Mboungou Patrick Joe Stivell, School of Finance, Zhongnan University of Economics and Law, Wuhan, China.
[2]
Jinlin Zhang, School of Finance, Zhongnan University of Economics and Law, Wuhan, China.
The purpose of our study is to assess the impact of foreign direct investment on economic growth in Congo (Brazzaville) over the period 1993-2004. In order to achieve this objective, we firstly proceeded with an analysis of FDI flows toward Congo and secondly, using an econometric evaluation with a panel analysis data collected in countries from the CEMAC zone over the same period. The data used were obtained from the World Bank basis Development Indicator (2004), which was sourced from the IMF and UNCTAD reports. This study shows that from the econometric estimation there are four variables that are statistically significant, and there is no causality of FDI on the economic growth despite the political context and the economic measures taken. However, economic growth is statistically significant on the FDI, only in the long term.
Foreign Direct Investment, Economic Growth, Causality
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