TITLE:
Exploring Foreign Direct Investments in Developing African Countries: Their Effects on the Economic Growth in Cameroon (2006-2011)
AUTHORS:
Efiong Akwaowo
KEYWORDS:
Foreign Direct Investments (FDI); Economic Growth; Economic Development; Developing Countries
JOURNAL NAME:
iBusiness,
Vol.5 No.1,
March
25,
2013
ABSTRACT:
This study
explores Foreign Direct Investment (FDI) and its effects on the economic growth
in Cameroon within the period 2006-2011.
The purpose of this study is to understand the reason why
increased FDI had not led to more economic
growth in Cameroon. Aghion’s endogeneity growth theory was used as a guide to data
collection and analysis. Research data were collected from 20 investment managers
with close relationships with Cameroon. The participants included
five from each subgroup of energy, health care, technology, and financial institutions, in the United States. The study participants expressed strong
commitment towards economic growth in Cameroon. The responses from the study participants
showed inconsistency with the literature review and the belief that FDI generates
economic growth in the developing countries. Moreover, the respondents reported
bureaucracy and corruption as the possible challenges facing the economic growth
in Cameroon. The research participants believed that eco-political factors directly
affect the economic growth in Cameroon. Policy implications and recommendations
for future studies were stated. It was recommended
that the country must improve its financial market by removing
financial restraints that hinder Cameroon firms from getting into export markets.
In addition, the Cameroon leaders should focus on improving human capital through
training and development. Training methods must be improved; a comprehensive plan
for training and development must be implemented. Moreover, Cameroon leaders should
ensure that their attention to FDI does not overshadow domestic small businesses. The study established that although
there were positive relationships between FDI and economic
growth in the developing countries such as Cameroon, the findings were inconclusive.
Future research should further study the effects of FDI on economic growth using
endogeneity growth theory in multi developing countries to determine if the study
findings from this dissertation can be supported in other settings.