The Relationship Between Foreign Direct Investment and Economic Growth in Togo 1991-2009

摘要

This study investigated the causal relationship between Foreign Direct Investment (FDI) and Economic Growth in Togo within the period 1991-2009. To that end, we used the Granger-causality to test and determine the causal relationship between FDI and Economic Growth in Togo. Using time series data, the research found that there was a unidirectional relationship between FDI and GDP. The direction of causation ran from FDI to GDP enables to conclude that FDI cause GDP and not otherwise. The study recommended improvement in the investment climate for foreign capital to enhance competitiveness and strengthen the bargaining position of the country in the emerging globalized economy.