Impact Of FDI On West African Economic And Monetary Union(WAEMU)Countries Economic Growth

Talk about the impact of FDI on the economic growth of developing countries has been the subject of extensive empirical research.According to some authors,the relationship between FDI and growth is positive,significant or not.But for others,it's negative.In summary,the relationship between FDI and growth seems confusing.Thus,mixed conclusions can be drawn from the fact that studies are conducted on panels,masking the specificities of each country.Over the last two decades,the effect of FDI on economic growth has increased in developing countries,particularly in Africa.Our research examines the impact of FDI on the economic growth of WAEMU countries from 1994 to 2015 using the random effects and fixed effects and GMM method.First,we discuss the impact on the entire sample,and after we group the eight countries in two:the landlocked countries and the littoral countries,also the effects of the recent years and finally we group the states in two;big states and small countries by GDP and Income.Empirical results show that FDI has no positive effect on economic growth across the sample.However,recent years have had a the positively significant effects on the economic growth of WAEMU member states and the impact of FDI on the economic growth of the four largest countriesin terms of GDP and per capita GDP is positive.For landlocked countries,the effect of FDI on economic growth is positively insignificant.Such a study seems necessary to us because little research has been conducted,especially on the effects of FDI on the economic growth of WAEMU.It will complement research explaining FDI relations and the economic growth of WAEMU countries.