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La contribution des investissements directs étrangers à la réduction de la pauvreté en Afrique subsaharienne

Editor

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  • Goaied, Mohamed
  • Bienaymé, Alain

Author

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  • Lahimer, Noomen

Abstract

We examine the contribution of FDI on poverty reduction in Sub-Saharan Africa from 1990 to 2005. The effects of FDI on poverty are analyzed through two mechanisms: institutional and economic. First, analyzing the institutional mechanism by a principal component analysis, we find out that manufacturing FDI are positively correlated with economic development, investment climate and reducing poverty. Second, we analyze the effects of FDI on poverty through economic mechanism within two parts. On one hand, multinational firms can crowd-in or crowd-out local firms. Using adequate econometric method “GMM Arenallo and Bond (1991)”, we detect that FDI in Sub-Saharan African countries crowd-out local investments. On the other hand, FDI affect absolute poverty through their effects on both growth and inequality. Using a simultaneous equations model, we’ve found that extractive FDI promote growth but increase inequality. This leads to an increase of absolute poverty. Thus, poverty reduction in Sub-Saharan Africa should be based, primarily, on distribution processes.

Suggested Citation

  • Lahimer, Noomen, 2009. "La contribution des investissements directs étrangers à la réduction de la pauvreté en Afrique subsaharienne," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/1167 edited by Goaied, Mohamed & Bienaymé, Alain.
  • Handle: RePEc:dau:thesis:123456789/1167
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    Keywords

    Pauvreté; Afrique noire; Développement économique; Investissements étrangers;

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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