Determinants of the Attractiveness of Private Capital in the Central African Economic and Monetary Community (CEMAC)

Abstract

The objective of this paper is to identify the factors of attractiveness of private capital flow (foreign direct investment and portfolio investment) in CEMAC over the period 2005-2019. To do so, we used the generalized moment model (two-step system and the static CGM model). Our main results show that the selected variables have positive and negative impacts on capital inflows into CEMAC. This implies improving the business climate, easing administrative procedures, and encouraging and facilitating the creation of businesses in order to make the sub region more attractive.