TITLE:
Effects of the 2008 Financial Crisis on the Determinants of Foreign Direct Investments in the West African Economic and Monetary Union (WAEMU): A Panel Data Approach
AUTHORS:
Tibi Didier Zoungrana, Daouda Lawa tanToé
KEYWORDS:
FDI, WAEMU, Least Developed Countries, Fixed Effect, Financial Crisis
JOURNAL NAME:
Modern Economy,
Vol.9 No.11,
November
13,
2018
ABSTRACT: This article analyzes through a panel data analysis
covering the period 1994 to 2016, the effects of the 2008 financial crisis on
the determinants of Foreign Direct Investment in the West African Economic and
Monetary Union (WAEMU). From the analysis, it turns out that this crisis has
strongly impacted FDI’s determinants in the union. In fact, as consequence, it
created a much more infatuation of resource-seeking investors in spite of
market-seeking investors. This result shows that those countries can still
attract investors even in time of crisis if they have tremendous natural
resources, which makes the protection of these resources very important. In
addition, we can notice that after the crisis, the stability in the region
became an important decisional variable for foreign investors. That points out
the importance of promoting a good political governance. Furthermore, the study
has also shown that the financial crisis has been a stepping corner for the
emergence of a third type of investors in the region (efficiency seeking
investors).