Analyzing the Impact of Institutional Quality on Foreign Direct Investment in Burkina Faso

The purpose of this study is to assess the impact of institutional quality on the mobilisation of foreign direct investment in Burkina Faso. Over the years 1985-2005, this study looked at the impact of institutional quality on the attraction of foreign direct investment in Burkina Faso. The application of error corrective modelling was enabled by various analysis on variables (VECM). The findings demonstrate a long-term link between FDI, corruption, external conflicts, and socioeconomic situations. As a result, the country must take adequate steps to improve the fight against corruption in all areas of the economy, as well as the independence of the judiciary, all of which will contribute to investor trust. As a result, relevant policies, such as strengthening judicial governance and refining existing anti-corruption strategies, must be developed in Burkina Faso. In addition, the government must participate in the proper resolution of foreign crises that deter potential investors, particularly in the West African subregion.

Author (S) Details

Zakaya Ramde

Statistician engineer, Macroeconomist, Chamber of commerce and industry of Burkina Faso, Burkina Faso.

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