Impact of Institutions and Natural Resources

This study attempts to examine the issue of FDI attractiveness in CEMAC. We seek to understand the factors specific to CEMAC countries that attract FDI in order to be able to prescribe economic policy guidelines with a view to making the region more attractive. Inspired by the Chen and Kwan (2000) model we estimated our model using the fixed effects method. The results show that natural resources openness human capital and institutions are significant and attract FDI to the CEMAC zone. In order to improve the attractiveness of FDI in the CEMAC zone we have formulated a number of economic policy recommendations. CEMAC countries need to improve the institutional framework which so far has not been conducive to attracting FDI on a massive scale and to improve education and infrastructure in the region. In addition the degree of openness is important for attracting FDI to the region.