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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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    File URL: http://publications.ceredec.org/RePEc/aby/aby-wpaper/The-Slow-growth-of-Foreign-Direct-Investment-in-Central-African-Republic.pdf
    File Function: Revised version, 2017
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    References listed on IDEAS

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    1. Schneider, Friedrich & Frey, Bruno S., 1985. "Economic and political determinants of foreign direct investment," World Development, Elsevier, vol. 13(2), pages 161-175, February.
    2. Kuzmina, Olga & Volchkova, Natalya & Zueva, Tatiana, 2014. "Foreign direct investment and governance quality in Russia," Journal of Comparative Economics, Elsevier, vol. 42(4), pages 874-891.
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    4. John H Dunning, 1988. "The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(1), pages 1-31, March.
    5. Adugna Lemi & Sisay Asefa, 2003. "Foreign Direct Investment and Uncertainty: Empirical Evidence from Africa," The African Finance Journal, Africagrowth Institute, vol. 5(1), pages 36-67.
    6. Sun, Qian & Tong, Wilson & Yu, Qiao, 2002. "Determinants of foreign direct investment across China," Journal of International Money and Finance, Elsevier, vol. 21(1), pages 79-113, February.
    7. Mesghena Yasin, 2005. "Official Development Assistance and Foreign Direct Investment Flows to Sub‐Saharan Africa," African Development Review, African Development Bank, vol. 17(1), pages 23-40.
    8. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    9. Wisniewski, Tomasz P. & Pathan, Saima K., 2014. "Political environment and foreign direct investment: Evidence from OECD countries," European Journal of Political Economy, Elsevier, vol. 36(C), pages 13-23.
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    Cited by:

    1. 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.

    More about this item

    Keywords

    Slow Growth of FDI; ECM; Long -run; Short-run; Central African Republic;

    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 - Economic Systems - - Socialist Institutions and Their Transitions - - - Legal
    • P39 - Economic Systems - - Socialist Institutions and Their Transitions - - - Other

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