An Investigation of the Long-Run and Causal Relationships between Economy Performance, Investment and Port Sector Productivity in Cote d’Ivoire

Abstract

This study used the Autoregressive Distributed Lag (ARDL) Bounds testing approach and Toda-Yamamoto Non-granger causality test to analyze respectively the long-run and causal relationships among economy performance, foreign direct investment, domestic investment and port sector production output in Cote d'Ivoire over the period 1980-2013. The empirical results illustrate that economy performance, foreign direct investment and domestic investment are significant in explaining the productivity of port sector. Therefore, the study suggests focusing on investment strategies that involve private (foreign and domestic) participation in projects dedicated to improve the safety, quality of operations in the sector and transport connectivity.

Exploring the Impact of Economic Indicators on Foreign Direct Investment: Case of Côte D'ivoire

“…The comprehensive literature review on Foreign Direct Investment reveals a nuanced understanding of the complex relationships between FDI and various economic indicators across diverse regions. Studies such as the one from Anguibi (2015) in Cote d'Ivoire and Seyoum, Wu, and Lin (2015) in African economies highlight the importance of economic performance and a two-way Granger causality between FDI and economic growth. Anyanwu and Yameogo's (2015) investigation in West Africa emphasizes positive impacts of real per capita GDP, domestic investment, trade openness, and monetary integration on FDI inflows, while noting negative relationships with economic growth and life expectancy.…”