This paper investigates the impact of foreign direct investment (FDI) inflows on economic\ngrowth in Cote D�Ivoire during the 1975-2011 period. The selection of this African nation is\nmotivated by the rapid inflows it has experienced over the past decade. Using unit root and\ncointegration analysis, the resulting error correction model (ECM) suggests that gross fixed\ncapital formation (GFCF) has a short-run positive impact on economic growth, while FDI,\nthe repatriation of net income abroad, and periods involving structural breaks, have a\nnegative effect on economic growth in Cote D�Ivoire. In addition, the negative error\ncorrection term indicates that deviations from long-run per capita growth during the current\nyear are corrected relatively quickly in the following year, ceteris paribus. The unexpected\nnegative effect of FDI on economic growth may be due to the significant repatriation of\nprofits and dividends the country has experienced in recent years.
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