Volatilité Du Taux De Change Et Investissements Directs Étrangers En Afrique De L'ouest Exchange Rate Volatility and Foreign Direct Investment in West Africa

Barry Auteur and Malick Camara ()
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Malick Camara: UNC - Université nongo Conakry

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Abstract: This study examines the effect of exchange rate volatility on FDI in West Africa (1996–2022), controlling for variables such as trade openness, economic growth, inflation, infrastructure, and institutions. The analysis is based on an ARDL panel model with the PMG estimator. Two institutional specifications were tested: corruption and political stability. The results show that in the long term, exchange rate volatility significantly reduces FDI, while in the short term, past volatility has a temporary positive effect. Trade openness and economic growth promote FDI, infrastructure has a negative effect, and corruption significantly hinders investment flows, unlike political stability. These results suggest prioritizing corruption reduction, improved governance, and the promotion of trade openness while stabilizing the economy. Keywords: Exchange rate volatility – FDI – Africa – ARDL

Keywords: Exchange Rate Volatility and Foreign Direct Investment in West Africa; Volatilité du taux de change -IDE -Afrique -ARDL Exchange rate volatility -FDI -Africa -ARDL (search for similar items in EconPapers)
Date: 2025
Note: View the original document on HAL open archive server: https://hal.science/hal-05422231v1
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Published in African Scientific Journal, inPress, ⟨10.5281/zenodo.17942613⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05422231

DOI: 10.5281/zenodo.17942613

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