Foreign Direct Investment (FDI), Trade and Its Contribution to the Mining Sector of Guinea

Kimberly Racquel Elizabeth Chin

Abstract


In order to objectively analyze Foreign Direct Investment (FDI) contribution to Guinea’s mining sector, the granger casualty test was used to determine the relationship among variables and to determine whether any of these variables affect others and how. The variables used are Gross Domestic Product, Government Income, Trade, FDI inflow into Guinea mining sector and the exchange rate. The granger casualty test produced evidence of a bidirectional casualty relationship which suggests that FDI’s influence on efficiency lies in the government relaxing its dependency on the mining industry for economic  growth.

Keywords


Foreign Direct investment; Economic growth; Mining sector

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DOI: https://doi.org/10.24212/2179-3565.2016v7i2p65-71

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