• EMMANUEL BRUNO  ONGO NKOA Department of Economics and Management, University of Buea
Keywords: Foreign direct investment, economic growth, human capital, CEMAC, panel data


The aim of this research work is to assess the influence of FDI on economic growth in the CEMAC region. The ratio of FDIs in the actual GDP of countries of the CEMAC region has recorded a steady annual increase for the past three decades. Moreover, the high variability of FDI, given the various crises and fluctuations in the prices of raw materials invites us to reflect and question the impact of FDI on growth by studying the case of CEMAC countries. The theoretical analysis is based on the neoclassical growth theory and its extensions. After the selection of a model crafted from Imoudu (2012) and Boreinsztein et al. (1998). The results show that FDI have a positive impact on the growth of the sub-region and these are conveyed by human capital.


Adams, S., 2009, “Foreign Direct Investment, domestic investment, and economic growth in Sub-Saharan Africa”, Journal of Policy Modelling, Vol.31, pp. 939–949.

Aghion P. and Howitt P. 1992, « A Model of Growth through Creative Destruction », Econométrica, Vol. 60, pp. 323-351.

Aitken B. J. and Harrison E. 1999, “Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela”, The American Economic Review, Vol. 89, N° 3, pp.605-618.

Alaya, M., Nicet-Chenaf, D., and Rougier, E. 2009, « A quelles conditions les IDE stimulent-ils la croissance - does FDI stimulate economic growth? FDI, growth and catalysts in the Mediterranean", World Development Vol.

Alfaro, L., Chanda, A., Kalemli-Ozcan, s., and Sayek, S. 2004, “FDI and economic growth: the role of local financial markets”, Journal of International Economics, N° 64, pp. 89-112.

Alfaro L., Chanda, A., Kalemli-Ozcan, S. and Sayek, S. 2010, “Does foreign direct investment promote growth? Exploring the role of financial markets on linkages”, Journal of Development Economics, Vol.91, pp.242–256.

Aurangzeb and Ul Haq, A. 2012, “Impact of Foreign Capital Inflows on Economic Growth in Pakistan”, European Journal of Economics, Finance and Administrative Sciences, Vol.46, pp.6-12.

Avom, D. and Ongo, Nkoa, B. 2012, “Why Foreign Direct Investment goes towards central Africa?” for coming in International Research Journal of Finance and Economics.

Balasubramanyam, V., Salisu, M. and Sapsford, D. 1996, “Foreign Direct Investment and growth in EP and IS countries”, The Economic Journal, Vol. 106, N°434, pp. 92-105.

Bang Vua, T. and Noyb, I., 2009, “Sectoral analysis of foreign direct investment and growth in the developed countries”, International Financial Markets, Institution and Money, Vol.19, pp.402–413.

Barro, R. 1990, “Government Spending in a Simple Model of Endogenous Growth”, Journal of Political Economy, Vol.98, N°5, pp.103-125.

Basu, P., Chakraborty, C., and Reagle, D. 2003, “Liberalization, FDI, and growth in developing countries: A panel cointegration approach”, Economic Inquiry, Vol.41, pp.510-516.

Bertrand P. and Gouia M. 1998, "Investissements directs étrangers et développement industriel méditerranéen - Foreign Direct Investment and Industrial Development in the Mediterranean», Economica.

Blomström M., Lipsey R. E., Zejan M. 1994, “What explains developing countries growth?”, NBER working Paper n°4132, NBER, Cambridge, Mass.

Blomström M. and Persson H. 1983, « Foreign Investment and Spillover Efficiency in an Underdeveloped Economy : Evidence from Mexican Manufacturing Industries”, World Development, Vol. 11, N° 6, pp. 12-39.

Blomström M. and Wolff E. 1994, "Multinational corporations and productivity convergence in Mexico", dans Baumol W, Nelson R. and Wolff E. (Eds): Convergence of Productivity: Cross National studies, Oxford, Oxford University Press.

Blonigen, B., and Wang, M., 2005, “Inappropriate pooling of wealthy and poor countries in empirical FDI studies”, In: Moran, T.H., Graham, E.M., Blomstrom, M. (Eds.), Does Foreign Direct Investment Promote Development? Institute of International Economics Press, Washington, DC.

Borensztein E, De Gregorio J. and Lee J-W. 1998,”How Does Foreign Direct Investment Affect Economic Growth?” Journal of International Economics, Vol. 45, N°2, pp. 115-135.

Brewer, T.L. and Young, L. 2000, The multilateral investment system and multinational enterprises, Oxford University Press.

Carkovic M., Levine R. 2007, “Does Foreign Direct Investment Accelerate Economic Growth?” Oxford Economics Papers, Vol.8 pp. 195-220.

Caves, R. 1974, “Causes of direct Investment: Foreign Firms, Shares in Canadian and United Kingdom Manufacturing Industries”, Review of Econmic and Statistics, Vol. 56, N° 3 pp. 279-293.

Fatah, F., and Othman, N. and Abdullah, S. 2012, “Economic Growth, Political Freedom and Human Development: China, Indonesia and Malaysia”, International Journal of Business and Social Science, Vol. 3, N° 1, pp. 291-299.

Giovanni P. and Dieter U. 2004, “Catching-up to Foreign Technology? Evidence on the “Veblen-Gerschenkron” Effect of Foreign Investments, NBER Working paper No 10893.

Globerman S. 1991, “Foreign Direct Investment and „Spillover‟ Efficiency Benefits in Canadian Manufacturing Industries”, Canadian Journal of Economics, Vol. 12, N°1, pp 42-56.

Herzer, D. 2009, “Outward FDI and economic growth”, Journal of Economic Studies, Vol.37, N° 5, pp. 476-494.

Im, K., Pesaran, M. and Shin, Y. 2003, “Testing for Unit Roots in Heterogeneous Panels”, Journal of Econometrics, 115, 1, pp. 53-74.

Imoudu, Ch. 2012, “The Impact of Foreign Direct Investment on Nigeria’s Economic Growth; 1980-2009: Evidence from the Johansen’s Co-integration Approach”, International Journal of Business and Social Science, Vol. 3, N°. 6, pp. 122-134.

Javed, K. sher, F. Awan, R. and Ashfaq, M. 2012, “Foreign Direct Investment, Trade and Economic Growth: A Comparison of Selected South Asian Countries”, International Journal of Humanities and Social Science,Vol. 2, N° 5, pp. 210-220.

Jyh Lin, F. 2010, “The determinants of foreign direct investment in China: The case of Taiwanese firms in the IT industry”, Journal of Business Research, Vol.63, pp.479–485.

Kumar, G., Dhingra, N. and Singh, A. 2009, “Growth and Forecasts of FDI Inflows to Latin America and the Caribbean”, European Journal of Social Sciences, Vol.12, N°2, pp. 216-234.

Levin, A. and Lin, C. 1992, “Unit Root Test in Panel Data: Asymptotic and Finite Sample Properties”, University of California at San Diego, Discussion Paper 92-93.

Levin, A. and Lin, C. 1993, “Unit Root Test in Panel Data: New Results”, University of California at San Diego, Discussion Paper 93-56.

Li, X., and Liu, X. 2005, “Foreign direct investment and economic growth: an increasingly endogenous relationship”, World Development, Vol.33, pp.393-407.

Lipsey, R.E., 1999, “The role of foreign direct investment in international capital Flows”, NBER, Working Paper 7094.

Kokko A. 1994, “Technology, Market Characteristics and Spillovers”, Journal of development Economics, Vol. 43, N°5, pp. 279-293.

Kokko A. 1996, “Productivity Spillovers from Competition between Local Firms and Foreign Affiliates”, Journal of International Development, Vol.8, N°4, pp. 517-530.

Maingy, C. 2004, « L’impact des investissements directs étrangers sur les économies en développement - , "The impact of foreign direct investment on developing economies," Region and Development, No. 20, pp. 65-89.

Mankiw, G. Romer, D. and Weil, D. 1992, “A Contribution to the Empirics of Economic Growth”, Quarterly Journal of Economics, Vol. 107, pp. 407-437.

Nourbakhshian, M., Hosseini, S., Aghapour, A., Gheshmi, R. 2012, “The Contribution of Foreign Direct Investment into Home Country’s Development”, International Journal of Business and Social Science, Vol. 3 No. 2, pp. 275-287.

Ozturk, I. 2007, “Foreign Direct Investment - Growth Nexus: A Review of the Recent Literature”, International Journal of Applied Econometrics and Quantitative Studies, Vol. 4, N°2, pp. 79-98.

Rabiei, M. and Masoudi, Z.G. 2012, “Foreign Direct Investment and Economic Growth in Eight Islamic Developing Countries”, European Journal of Scientific Research, Vol.68, N°4, pp. 487-493.

Reiter, S., L. and Kevin S., H. 2010, “Human Development and Foreign Direct Investment in Developing Countries: The Influence of FDI Policy and Corruption”, World Development, Vol. 38, N°. 12, pp. 1678-1691.

Romer, P. 1990, “Endogenous Technological Change”, Journal of Political Economy, Vol.98, pp. 71-102.

Romer, P. 1986, « Increasing returns and long run growth », Journal of Political Economy, Vol. 94, pp.1002-1037.

Solow, R. 1957, “A Contribution to the Theory of Economic Growth”, Quarterly Journal of Economics, Vol. 70, pp. 65-94.

World Development Indicator 2011.

Yousaf, M. Hussain, z. and Ahmad, N. (2008), “Economic evaluation of foreign direct investment in Pakistan”, Pakistan economic and social review, Vol. 46, 2008, pp. 37-56.