Foreign direct investment and economic growth in Cameroon

Abstract

Driving force of globalization, FDI represents an exceptional opportunity for third world countries to accelerate their development. This study examines the bi-directional connection between FDI and economic growth in Cameroon. The methodology is based on regressions of FDI and Cameroonian GDP for the period (1980 – 2009). The results confirm the positive link between FDI and economic growth. On the other hand the study shows that external resources (FDI and Foreign Aid) are more efficient than domestic investment for economic growth.