The Threshold Foreign Direct Investment under Application of the Growth Identification and Facilitation Framework: case of Benin Author: Kokou Wotodjo Tozo

Page: 480-490

The Threshold Foreign Direct Investment under Application of the Growth Identification and Facilitation Framework: case of Benin

Author: 

Kokou Wotodjo Tozo

Abstract

This paper aims to contribute to the first stage in applying the Growth Identification and Facilitation Framework (GIFF) of the New Structural Economics (NSE). The key point is to give additional proactive guidelines to developing governments in their effort to attract foreign direct investment (FDI) for enabling growth and structural transformation under GIFF application. To proceed, we explore the importance of an initial condition. We claim that FDI has direct effect on growth only if it reaches a certain share of a country’s GDP, it remains negative otherwise. We provide an empirical verification to our underlying hypothesis and find that FDI has positive impact on growth in Benin only if its share exceeds 2.062% of the country’s GDP. Our finding, therefore, gives Benin Government a more precise target on the amount of FDI in the beginning.

 Key words: FDI, GIFF, Threshold, sample split, bootstrapping, Cobb-Douglas, Benin.

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Title: The Threshold Foreign Direct Investment under Application of the Growth Identification and Facilitation Framework: case of Benin
Authors: Kokou Wotodjo Tozo
Journal Name: International Journal of Science and Business
Website: ijsab.com
ISSN: ISSN 2520-4750 (Online), ISSN 2521-3040 (Print)
DOI: https://doi.org/10.5281/zenodo.1323190
Media: Online and Print
Volume: 2
Issue: 3
Acceptance Date: 28/07/2018
Date of Publication: 30/07/2018
PDF URL: http://ijsab.com/wp-content/uploads/265.pdf
Free download: Available
Page: 480-490
First Page: 480
Last Page: 490

Cite This Article:

Tozo, K. W. (2018). The Threshold Foreign Direct Investment under Application of the Growth Identification and Facilitation Framework: case of Benin. International Journal of Science and Business, 2(3), 480-490. doi: https://doi.org/10.5281/zenodo.1323190

Retrieved from http://ijsab.com/wp-content/uploads/265.pdf

 

About Authors

Kokou Wotodjo Tozo, Researcher: Institute of New Structural Economics at Peking University & PhD candidate: University of International Business and Economics

 

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DOI: https://doi.org/10.5281/zenodo.1323190

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