The impact of the withdrawal of ESA countries (Burkina Faso, Mali, Niger) from ECOWAS on their foreign direct investment

L’impact du retrait des pays de l’AES (Burkina Faso, Mali, Niger) de la CEDEAO sur leurs investissements directs étrangers

Lassana Toure (), Mickaël Clevenot (), Abdoul Karim Diamoutene () and Mahamadou Bassirou Tangara ()
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Lassana Toure: University of Segou
Mickaël Clevenot: UB - Université de Bourgogne
Abdoul Karim Diamoutene: Université des sciences sociales et de gestion de Bamako - USSGB - Université des sciences sociales et de gestion de Bamako
Mahamadou Bassirou Tangara: Université des sciences sociales et de gestion de Bamako - USSGB - Université des sciences sociales et de gestion de Bamako

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Abstract: This study analyses the impact of the withdrawal of Burkina Faso, Mali and Niger from ECOWAS, focusing on foreign direct investment (FDI) inflows as a percentage of GDP, using data from the World Bank database (API_BX.KLT.DINV.WD.GD.ZS_DS2_en_excel_v2_7799.xls) for the period 1971 - 2022. Using a counterfactual analysis approach, specifically the double-difference method also known as difference-in-differences. The results indicate that Mali could potentially lose on average 1.86% of FDI inflows if it left ECOWAS, while for Niger this loss could reach 2.48%. However, Burkina Faso's membership of ECOWAS does not appear to have a significant impact on FDI inflows according to this model. This analysis highlights both the challenge and the opportunities of redefining regional economic and political relations. It highlights the need for strategic adjustments at national and regional level to cope with this new dynamic. Keywords : ECOWAS, Foreign Direct Investment (FDI), Counterfactual analysis, Regional economic impact,Adjustment strategies

Keywords: ECOWAS Foreign Direct Investment (FDI) Counterfactual analysis Regional economic impact Adjustment strategies; ECOWAS; Foreign Direct Investment (FDI); Counterfactual analysis; Regional economic impact; Adjustment strategies (search for similar items in EconPapers)
Date: 2024-09-07
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