Determinants of the Attractiveness of Foreign Direct Investments in CEMAC: an Empirical Panel Analysis Over the Period From 1985 to 2019

Abstract

This article aims to determine the factors that explain the attractiveness of foreign direct investment (FDI) at the level of the six countries of the Economic and Monetary Community of Central Africa (CEMAC), over the period 1985-2019. Using the fixed effects panel model, the results of this research indicate that gross domestic product per capita, human capital, domestic credit provided to the private sector by banks and gross national expenditure explain the attractiveness of FDI. Moreover, by using the ordinary least squares (OLS) model to analyze the determinants of the attractiveness of FDI by country, the econometric results show differentiated effects.