TITLE:
Macroeconomic Determinants of Foreign Direct Investment in WAEMU Countries: The Place of Electronic Communication
AUTHORS:
Madow Nagou
KEYWORDS:
Electronic Communication, FDI, Fixed Effects Model, UEMOA
JOURNAL NAME:
Modern Economy,
Vol.7 No.14,
December
14,
2016
ABSTRACT: In order to contribute in boosting Foreign Direct
Investment (FDI) in the West African Economic Monetary Union (WAEMU)
countries, this article aims to empirically establish the role of various
macroeconomic determinants in attracting FDI by focusing specifically on electronic
communication. The empirical estimates are based on panel data covering the
period 1996-2014. These data come from United Nations Conference on Trade and Development (UNCTAD) and World Development
Indicators (WDI) databases. Inspired from Arellano-Bond methodology, we
estimate a fixed effects model for the sake of analysis. From the results, the
electronic communication appears to be non-determinant for the attraction of
FDI in the WAEMU countries. This result may be explained by the considerable
level of electronic communication development prevailing currently in the
union. In addition, it appears that economic dynamism captured through the
gross domestic product, the weight of international trade and natural resources
are the current key factors for attracting FDI in the union. Moreover, the increase
in government spending tends to oust FDI.