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The Slow growth of Foreign Direct Investment in Central African Republic

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  • Pacific K. T. Yapatake

    (Zhejang University, Hangzhou, China.)

Abstract

Large amounts of foreign direct investment have been attracted by many African countries. Yet the Central African Republic is by far less attractive in the perspective of potential investors. The aim of this paper is to investigate the slow inflows and growth of FDI in the country. In the short-run and long-run we found out that the Gross Domestic Product growth, the domestic credit to private sector, the electricity production and the quality of public administration are not significant. The Error Correction Mechanism is significant at 0.05 which demonstrates that the speed of adjustment of the model from short-run to long-run is about 46%. It is very important for Central African Republic to renovate the national electricity supply company by increasing the hydro- electric production.

Suggested Citation

  • Pacific K. T. Yapatake, 2017. "The Slow growth of Foreign Direct Investment in Central African Republic," CEREDEC Working Papers 17/001, Centre de Recherche pour le Développement Economique (CEREDEC).
    • Handle: RePEc:aby:wpaper:17/001
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    References listed on IDEAS

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    Cited by:

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    2. Petr Procházka & Iveta Černá, 2023. "Dynamics of GVC Position of v4 Automotive Suppliers: Implications for Public Policy," Central European Business Review, Prague University of Economics and Business, vol. 2023(2), pages 19-36.
    3. Yapatake Kossele Thales Pacific, 2020. "Fragility of State in Central African Republic: An Econometric Approach to Efficiency Understanding," Global Business Review, International Management Institute, vol. 21(3), pages 681-697, June.
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    More about this item

    Keywords

    Slow Growth of FDI; ECM; Long -run; Short-run; Central African Republic;
    All these keywords.

    JEL classification:

    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • 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
    • P37 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Legal
    • P39 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Other

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