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Foreign Direct Investment and Macro Economic Performances in the Central African Economic and Monetary Community (CEMAC)

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  • Constant Fouopi djiogap

    (University of yaounde II)

Abstract

This article analyzes the impact of macroeconomic performances on the inflow of Foreign Direct Investment (FDI) in the Central African Economic and Monetary Community (CEMAC)'s Countries over the period 1995 – 2010, Using a dataset which breaks down FDI flows into primary, secondary and tertiary sector investments and a GMM dynamic approach to address concerns about endogeneity. We find that, Our result suggests that all sectors FDI have no strong linkages to either macroeconomic conditions, or institutional quality, though like other forms of FDI, clustering effects appear important, with larger stocks attracting greater additional inflows. The main recommendation are (i) CEMAC Countries must diversify their economies in other to increase their market size and non natural resources growth potential (i) institutional quality should be improved.

Suggested Citation

  • Constant Fouopi djiogap, 2013. "Foreign Direct Investment and Macro Economic Performances in the Central African Economic and Monetary Community (CEMAC)," Economics Bulletin, AccessEcon, vol. 33(4), pages 2563-2574.
    • Handle: RePEc:ebl:ecbull:eb-13-00330
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2013/Volume33/EB-13-V33-I4-P241.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Foreign Direct Investment; macroeconomic performances; natural resources; market size; economic diversification;
    All these keywords.

    JEL classification:

    • F0 - International Economics - - General
    • F2 - International Economics - - International Factor Movements and International Business

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