Exploring Foreign Direct Investments in Cameroon: Their Effects on the Economic Growth in the Country

The problem addressed in this qualitative case study was that the increased inflow of FDI into Cameroon failed to lead to higher economic growth in the country. The purpose of this qualitative case study was to understand the reasons 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. Using a qualitative, single-case study approach, structured telephone interviews were conducted with these 20 investment managers. The participants included five from each subgroup of energy, financial institutions, health care, and technology, in the United States. The study participants expressed strong commitment towards economic growth in Cameroon. These investment managers described their willingness to help in training and development of the Cameroon citizens despite the high cost. 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 20 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.