Foreign Direct Investment And Its Impact On Djibouti's Economic Growth 1991-2014

As the investment is the main and most imperative variable that controls the rate of economic growth so this study examines the effect of FDI on economic growth and their relationship in Djibouti using time series data for the period 1991 – 2014,for the picked factors information accessible,and the study demonstrates the commitment of FDI to economic development of Djibouti so to understand the country economic movement and to know whether the call for more FDI is very important.And also the impact that FDI has had on the Djiboutian economy over the past few decades since the government investment climate has improved.The method of ordinary least square(OLS)has been used,in the wake of testing for unit root in the arrangement of information utilized for the study and testing the long run relationship among FDI and GDP.The study comes about demonstrates that FDI in the case of Djibouti have insignificant effects and a limit impact on Djibouti's economy growth,and it recommended that the government should review its economic policies and regulations so as to create a favorable environment to attract more foreign direct investment into the country.