TITLE:
Effect of Foreign Direct Investments on Economic Growth in CEMAC Zone: Role of Human Capital
AUTHORS:
Steve Bertrand Mboko Ibara
KEYWORDS:
Economic-Growth, FDI, Human-Capital, CEMAC, GMM
JOURNAL NAME:
Modern Economy,
Vol.11 No.12,
December
31,
2020
ABSTRACT:
The objective of this paper is to analyze the role
played by human capital in the relationship of foreign direct investment (FDI)
and economic growth in the Central African Economic and Monetary
Community (CEMAC). To achieve the assigned goal, we use the generalized method of moments (GMM) in a dynamic panel system
proposed by Blundell et al. (2012) on
annual series of 50 by country (Cameroon, Congo,
Gabon, CAR, and
Chad)1 from 1970 to 20192. Two
major conclusions emerged from this research. The first is that human capital in the CEMAC zone
contributes significantly to improving the FDI-economic
growth relationship. The second conclusion is that human capital has a negative and very
significant effect on economic growth, all other things being equal. This
result corroborates the threshold effect estimates that have
shown that the CEMAC
zone has not yet reached a level of human capital, enabling one to take advantage of the economic benefits specific
to the return on investment in education or through spillovers.