Review of Contemporary Business Research

Environnement des Affaires et IDE au Cameroun/ Business Environnent and FDI in Cameroon
Yves Patrice ETOGO NYAGA, Moussa Elhadji SAIDOU, Ali Mahamat GAMBO

Abstract
The objective of this research is to study the influence of the business environment on FDI (Foreign Direct Investment) in Cameroon. We use the ARDL model and the bounds testing cointegration approach. The study leads to the following results: (i) some variables in the business environment have a negative influence on FDI i.e. inflation, political risk, public debt, while the growth rate and infrastructure have a rather positive effect ; (ii) the error correction term indicates a moderate speed of convergence towards the long-run equilibrium of the influx of FDI since the short-term deviations of this equilibrium are corrected at 32.83% per year by feedback effect.

Full Text: PDF     DOI: 10.15640/rcbr.v8n2a2