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The Impact of Infrastructure development on Foreign Direct Investment in Cameroon

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  • Stéphane Mbiankeu Nguea

    (Université de Dschang)

Abstract

Better access to improved infrastructure services is one of the components of a favourable investment climate for foreign investors and an important engine for sustainable economic growth. The purpose of this study was to investigate the effects of communication, energy and transport infrastructures development on Foreign Direct Investment (FDI) in Cameroon. This study employs autoregressive distributed lag (ARDL) approach to cointegration and an error correction model based on ARDL approach using time series data for the period 1984-2014. The results revealed that communication infrastructure has a positive and significant impact on FDI in both the long run and the short run. Findings also revealed a negative impact of energy infrastructure in attracting FDI in the long run and in the short run while an insignificant impact of transport infrastructure on FDI is registered in both the long run and the short run. The results suggest that the improvement of business climate trough better infrastructures play a major role in attracting FDI in Cameroon.

Suggested Citation

  • Stéphane Mbiankeu Nguea, 2020. "The Impact of Infrastructure development on Foreign Direct Investment in Cameroon," Working Papers halshs-02446497, HAL.
    • Handle: RePEc:hal:wpaper:halshs-02446497
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-02446497
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    Cited by:

    1. Mohd Shahidan Shaari & Muhamad Huzaifah Asbullah & Noorazeela Zainol Abidin & Zulkefly Abdul Karim & Benjamin Nangle, 2023. "Determinants of Foreign Direct Investment in ASEAN+3 Countries: The Role of Environmental Degradation," IJERPH, MDPI, vol. 20(3), pages 1-14, January.

    More about this item

    Keywords

    ARDL; FDI; Cameroon JEL Classification: H41; R42; F21; E22; Infrastructure;
    All these keywords.

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity

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