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In order to contribute in boosting Foreign DirectInvestment FDI in the West African Economic Monetary Union WAEMUcountries, this article aims to empirically establish the role of variousmacroeconomic determinants in attracting FDI by focusing specifically on electroniccommunication. The empirical estimates are based on panel data covering theperiod 1996-2014. These data come from United Nations Conference on Trade and Development UNCTAD and World DevelopmentIndicators WDI databases. Inspired from Arellano-Bond methodology, weestimate a fixed effects model for the sake of analysis. From the results, theelectronic communication appears to be non-determinant for the attraction ofFDI in the WAEMU countries. This result may be explained by the considerablelevel of electronic communication development prevailing currently in theunion. In addition, it appears that economic dynamism captured through thegross domestic product, the weight of international trade and natural resourcesare the current key factors for attracting FDI in the union. Moreover, the increasein government spending tends to oust FDI.

KEYWORDS

Electronic Communication, FDI, Fixed Effects Model, UEMOA

Cite this paper

Nagou, M. 2016 Macroeconomic Determinants of Foreign Direct Investment in WAEMU Countries: The Place of Electronic Communication. Modern Economy, 7, 1601-1609. doi: 10.4236-me.2016.714142.





Author: Madow Nagou

Source: http://www.scirp.org/



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