WHAT IS THE IMPACT OF FDI ON MALI's ECONOMIC GROWTH

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The purpose of this study is to investigate with the regression procedure the impact of foreign direct investment(FDI) on economic growth in Mali.We employ economic indicators such as Gross Domestic Product(GDP),Stock of FDI,Fixed Domestic Capital Investment,Labor Force,Trade(Exports plus Imports),and Education in a structural model to explain the relationship between FDI and Mali’s economic growth.All the variables data period is from 1980 to 2008.Our findings showed a positive relationship between FDI and economic growth in Mali.The country must promote a policy of attracting foreign direct investment.Firstly,FDI will increase investments in the country.Secondly,FDI can improve domestic firms competitiveness and therefore it has a positive impact on job creation in the country.Thirdly,FDI can promote Mali exports and therefore,has a positive impact on the country balance of payment.However,we consider necessary that the country must pay attention on political stability,corruption and other risks associated with the economic environment. The purpose of this study is to investigate with the regression procedure the impact of foreign direct investment (FDI) on economic growth in Mali. We employ economic indicators such as Gross Domestic Product (GDP), Stock of FDI, Fixed Domestic Capital Investment, Labor Force, Trade (Exports plus Imports), and Education in a structural model to explain the relationship between FDI and Mali’s economic growth. All the variables data period is from 1980 to 2008. Our findings showed a positive relationship between FDI and economic growth in Mali The country must promote a policy of attracting foreign direct investment. Firstly, FDI will increase investments in the country. Second, FDI can improve domestic firms competitiveness and therefore it has a positive impact on job creation in the country. Third, FDI can promote Mali exports and therefore, has a positive impact on the country balance of payment. Host, we consider necessary that the country must pay attention on political stability, corruption and other risks associated with the economic environment.
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