Foreign Direct Investment and strongEconomicstrong Growth The Experience.pdfVIP

Journal of Finance Economics Volume 2, Issue 1 (2014), 01-14 ISSN 2291-4951 E-ISSN 2291-496X Published by Science and Education Centre of North America Foreign Direct Investment and Economic Growth: The Experience of CEMAC Countries ONGO NKOA B. Emmanuel1, 2,* 1Department of Economics and Management, Faculty of Social and Management Sciences, University of Buea, Cameroon 2Laboratory for Analysis and Research in Applied Economics (LARAE), University of Yaounde II, Cameroon *Correspondence: ONGO NKOA B. Emmanuel, Assistant Lecturer, Department of Economics and Management, Faculty of Social and Management Sciences, University of Buea; and Member of LARAE, Cameroon; Email: ongoema@yahoo.fr DOI: 10.12735/jfe.v2i1p1 Abstract This paper estimates the impact of foreign direct investment (FDI) on economic growth in CEMAC countries. The basic theory is that of endogenous growth. The econometrical study is based on the work of Alaya, Nicet-Chenaf, and Rougier (2009) and Borensztein, De Gregorio, and Lee (1998). This model also includes the channels through which FDI influences growth. The study covers the period 1980-2010. All CEMAC countries are considered. To estimate the model, the author has used the method of double least squares and the generalised method moment. The results show that FDI affect growth in all CEMAC countries except Congo. The mean by which the realisation of their influence differs from one country to another. The main recommendation of the study is to promote economic and structural policies to modernise the economies of CEMAC. JEL Classifications: E23, F21, F43