• ISSN: 2010-023X (Print)
    • Abbreviated Title: Int. J. Trade, Economics and Financ.
    • Frequency: Bimonthly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Executive Editor: Ms. Cherry L. Chen
    • Abstracting/ Indexing:  ProQuest, Crossref, Electronic Journals Library , EBSCO, and Ulrich's Periodicals Directory
    • E-mail: ijtef@ejournal.net
IJTEF 2020 Vol.11(2): 24-31 ISSN: 2010-023X
DOI: 10.18178/ijtef.2020.11.2.661

Foreign Direct Investment and Import Demand in Cote d’Ivoire

Yaya Keho
Abstract—This study investigates the impact of inward foreign direct investment (FDI) on aggregate imports in Cote d’Ivoire using time series data covering the period from 1980 to 2017. The importance of this topic arises from its impact on the balance of payments. To test this nexus, we extend the traditional import demand function to include FDI and employ the bounds testing approach in the autoregressive distributed lag framework. The results reveal that there is long run relationships among imports, income, domestic price, import price and FDI, and all the four variables are significant determinants of imports in Cote d’Ivoire both in the long and short run. Domestic income and FDI were found to have positive effects on imports, while relative import price exerts a negative effect.

Index Terms—Imports, foreign direct investment, income, relative price, Cote d’Ivoire.

Yaya Keho is with the Ecole Nationale Supérieure de Statistique et d’Economie Appliquée (ENSEA) Abidjan, Cote d’Ivoire (e-mail: yayakeho@yahoo.fr).


Cite: Yaya Keho, "Foreign Direct Investment and Import Demand in Cote d’Ivoire," International Journal of Trade, Economics and Finance vol.11, no.2, pp. 24-31, 2020.

Copyright © 2020 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).


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