TITLE:
Effects of Chinese FDI on Congolese Exports
AUTHORS:
Jean Michel Koutima Banzouzi, Cloli Sacré Akouelamouai Atsamekou, Aimé Stanislas Etoka-Beka
KEYWORDS:
Foreign Direct Investment, Exports, China, Congo
JOURNAL NAME:
Theoretical Economics Letters,
Vol.12 No.6,
December
16,
2022
ABSTRACT: This paper examines the
effect of FDI on Congolese exports. This study highlights the analysis of the
existing relationship between FDI and exports. Indeed, the analysis of this
relationship has been carried out theoretically and empirically by several
authors who did not find unanimous results. Thus, some authors have found a
relationship of substitution (negative effect) and others, a relationship of
complementarity (positive effect). In our study, the empirical analysis was
carried out using the vector error correction model (VECM) over the period 2005
to 2014. The results obtained show the existence of a substitution relationship
between Chinese FDI and Congolese exports. The coefficients associated with the
FDI variable in the short and long term are respectively (-0.408367) and
(-0.764633) at the 5% threshold.