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The effects of foreign direct investment on economic growth: evidence for Togo

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  • Maman Tachiwou ABOUDOU

    () (Sanili Afrique Developpement, Lome, Togo)

Abstract

The objective of this paper is to examine the effect of foreign direct investment (FDI) on economic growth. I use data running over 33 years from 1975 to 2008. Generally, the results, obtained by using the ordinary least squares (OLS) methods show foreign direct investment (FDI), Trade volume, and Human capital to have a positive impact on economic growth. There is some evidence that inflation and Government consumption to found to have a negative impact on economic growth. The empirical analysis shows that FDI alone plays an ambiguous role in contributing to economic growth.

Suggested Citation

  • Maman Tachiwou ABOUDOU, 2010. "The effects of foreign direct investment on economic growth: evidence for Togo," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 13(2), pages 269-282, December.
  • Handle: RePEc:rom:econmn:v:13:y:2010:i:2:p:269-282
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    More about this item

    Keywords

    foreign direct investment; Togo; economic growth.;

    JEL classification:

    • 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
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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