Abstract
This study highlights the role of institutional factors in determining private investment in Cote d’Ivoire. The data come from the World Bank and the “Political Risk Services Group”. The Autoregressive Distributed Lag (ARDL) approach was used. The reduction of investment risks, the fight against corruption and the preservation of governmental stability are determining factors of private investment in Cote d’Ivoire. It is recommended to establish a national authority with exceptional sanctioning powers to fight corruption more effectively and to promote a democratic culture that ensures a better quality of the institutional environment.
Highlights
Private investment has positive effects on economic growth [1] and on employment [2]
The results indicate that public investment, foreign direct investment, trade are the main determinants of domestic short-term and long-term private investment in Côte d’Ivoire while the real gross domestic product (GDP) growth rate interest are statistically insignificant
Empirical Estimation Results Our results show that in Côte d’Ivoire, private investment is well explained by the independent variables chosen, namely the index of corruption, public investment, investment conditions, stability of government and trade
Summary
Private investment has positive effects on economic growth [1] and on employment [2].
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