The impact of Foreign Direct Investment on Economic Growth in Niger

Abstract

The main target of this paper is to analyze the impact of foreign direct investment on Niger economic growth by employing time series dates over the period 1980–2005. The data of this study come from different sources such as, World Development Indicators, the Niger Investment Agency, and the office of national statistics (INS). To determine the relationship among FDI and economic growth, we used Ordinary Least Square (OLS) and granger causality test as econometric methodologies. The findings revealed that foreign direct investment has a positive and statistically significant contribution on Niger’s economic growth. The granger causality test shows a bidirectionary causation running from FDI to GDP and vice –versa but no strong .This study recommends: that local government must continue to ensure Business Friendly Environment in the purpose to attract more investors and to maintain Political and economic Stability at all stages in Niger.