1. Domestic Investment, Foreign Direct Investment, and Economic Growth in Sub-Saharan Africa: A Case of Industrial Investment in Cameroon
- Author
-
Tian Ze, Nelson Amowine, Tasinda Odette Tougem, and Imanche Sunday Adiyoh
- Subjects
Sub saharan ,Domestic investment ,Management of Technology and Innovation ,Strategy and Management ,General Engineering ,International economics ,Foreign direct investment ,Business ,Business and International Management ,Investment (macroeconomics) - Abstract
This study empirically examines the impact of Domestic Investment (DI) and Foreign Direct Investment (FDI) on the economic development of Cameroon from 1990 to 2018. The four factors investigated include financial development, institution, infrastructure, and social capital. Both the dynamic panel estimate and standing panel lapse methods were used to evaluate the connection between DI and FDI concerning the economic development based on the factors enumerated. The results show that DI has a positive influence on and correlates with the growth of the economy. In addition, it indicated that there is an improvement in the financial progress when FDI is on the increase. Moreover, this study indicates that the increase in the institutions, human capital, and the monetary system improves the economic development of the country. It can be inferred from the results that Cameroon had a significant increase in her infrastructures and school enrolment from 2001 to date because of the increase in DI and FDI. The results show that FDI negatively affects some social capital of the Cameroon people such as the displacement of schools and markets, which is consistent with previous studies and results from the literature reviewed.
- Published
- 2021