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FDI determinants in Mano River Union countries: micro and macro evidence

Author

Listed:
  • Rodrigo Martins

    (Centre for Business and Economics CeBER and Faculty of Economics, University of Coimbra)

  • Jorge Cerdeira

    (University of Minho, School of Economics and Management and University of Porto, Institute of Sociology (IS-UP) Faculty of Arts and Humanities and Instituto Superior de Contabilidade e Administração do Porto (ISCAP), CEOS.PP)

  • Miguel Fonseca

    (University of Porto, Faculty of Economics and Management and University of Lisbon, Centre for African and Development Studies, CESA, Lisbon School of Economies of Management)

  • Mohamed Barrie

    (University of Porto, Faculty of Economics and Management)

Abstract

This paper analyzes the main determinants of Foreign Direct Investment (FDI) in the member countries of Mano River Union: Côte d’Ivoire, Guinea, Liberia and Sierra Leone. We use both data at the firm level and at the country level - and employ OLS and ARDL techniques - in order to examine the differences and similarities in FDI drivers across these four countries. Our results show that international trade, investment in infrastructures and access to credit have a positive impact on FDI. While credit and trade have a similar influence across countries, the effect of investment is distinct across Mano River members, which raises political implications for policy coordination among states. We also conclude that policies aimed to boost human capital, as well as political and economic stability, are relevant, as they augment FDI inflows.

Suggested Citation

  • Rodrigo Martins & Jorge Cerdeira & Miguel Fonseca & Mohamed Barrie, 2021. "FDI determinants in Mano River Union countries: micro and macro evidence," CeBER Working Papers 2021-02, Centre for Business and Economics Research (CeBER), University of Coimbra.
    • Handle: RePEc:gmf:papers:2021-02
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    More about this item

    Keywords

    Foreign Direct Investment; FDI determinants; Mano River Union; West Africa.;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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