Exploring the Impact of Economic Indicators on Foreign Direct Investment: Case of Côte D'ivoire


ZOUMANA OUATTARA
International finance Graduate student at Istanbul commerce university
DOI : https://doi.org/10.58806/ijirme.2024.v3i2n13

Abstract

This paper examines the impact of economic indicators on foreign direct investment in Côte d'Ivoire, using data from 1970 to 2022 sourced from the World Bank database. The independent variables examined include Gross Domestic Product, inflation rate, exchange rate, trade openness, and government debt, while FDI serves as the dependent variable. Through rigorous statistical analysis, including Augmented Dickey-Fuller tests, Ordinary Least Squares analysis, Johansen cointegration analysis, and Granger causality tests, the results showed that GDP and inflation rate exhibit statistically significant positive effect on FDI, suggesting that economic growth and higher inflation rates may attract foreign investment. However, variables such as exchange rate, trade openness, and government debt do not show significant impacts on FDI. The study underscores the nuanced nature of FDI determinants in Côte d'Ivoire, emphasizing the need for tailored policy interventions to foster sustained economic growth and attract foreign investment. These outcomes help to a deeper understanding of the complex dynamics shaping FDI inflows in the region, providing valuable insights for policymakers, investors, and stakeholders alike

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