Effect Of Fei On Economic Growth In Congo

The decision to invest in a country can be motivated by several determinants. In the analysis of the attractiveness of transnational corporations for foreign direct investment, these determinants are crucial.In fact, many of the determinants of foreign direct investment have been identified in the literature such as human capital, the degree of economic openness, inflation, infrastructure, etc... In this study, the question raised is whether foreign direct investment by transnational firms located in Congo, through these determinants have an impact on economic growth. Indeed, we attempt in this work to perform an empirical analysis to highlight the impact in the short and the long term of these determinants on the economic growth of the Congo. The endowment of Congo in oil natural resources is the main motivation for the entry of FDI; very far ahead of the wood industry and the service sector (in particular commercial banks). The econometric results show that the impact of FDI on economic growth in the Congo is highly dependent on the degree of trade openness, GDP/per capita oil production and infrastructure.