Impact Of Foreign Direct Investment On Welfare In Cote D'Ivoire

This study analyzes the impact of Foreign Direct Investment(FDI)on welfare in Cote d'Ivoire over the period of 1980 to 2016.For many years,developing countries,particularly in Cote d'Ivoire,have seen the role of FDI as important for their development.Foreign direct investment is seen as an engine of growth,as it provides the capital needed for investment,increases competition in host country industries,and helps support local businesses to become more productive,adopting more efficient technologies or investing in human capital which increases the welfare of the population.The benefits of FDI have been primarily a source of capital,job creation,access to foreign markets and the provision of technology for local businesses.FDI is the largest source of external financing for developing countries.This research uses the ARDL model to examines the impact of foreign direct investment(FDI)on welfare.The results of this study are associated with previous research that has shown a weak relationship between FDI and the Human Development Index(the proxy of welfare).In fact,foreign direct investment has a positive impact on welfare in the short term and a negative long-term impact.External debts have a negative impact on welfare in the short and long term,but according to the results of last year and previous years.The results also revealed that political rights have a positive influence on welfare in the short and long term.Inflation has a negative impact on welfare in the short and long term.Infrastructure has a positive impact in the short and long term.According to Granger,there is no causal relationship between foreign direct investment and social welfare.