Exploring Extrinsic Home Country Factors Motivating the Flow of Foreign Direct Investment

Evidence From the Central African Economic & Monetary Community Region

Bibliographic Data

ID22007187
AuthorsMohamadou Assamaou (0009-0008-8776-3743, Hohai University), Enyang Besong Susan (0000-0002-2283-276X, University of Buea), Shenbei Zhou (0000-0002-6404-880X, Hohai University, corresponding author)
Year2025
Volume15
Issue4
Publication date2025-10-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueSAGE Open (JOURNAL)
Journal identifiersISSN: 2158-2440 • E-ISSN: 2158-2440
PublisherSAGE Publications (PUBLISHER • US)
DOI10.1177/21582440251393368
OpenAlexW4416272312
LanguageEN
References cited74

This study identifies and gauges the extrinsic national-level drivers of foreign direct investment (FDI) flows into and out of the Central African Economic & Monetary Community (CEMAC) region. Drawing on the literature that simultaneously explains the reinforcing loop between FDI inflow/outflow and the broader literature on FDI, this study identifies macro factors that motivate the investment decisions of multinational enterprises. Based on factor Analysis, five decision pillars were identified. Using a fixed effect panel model with a backward stepwise procedure, the findings confirm a reinforcing link between the initial level of FDI inflow/outflow and the current pace of FDI flows. In addition, we found that inbound FDI location decision in CEMAC and Sub-Saharan Africa is strongly influenced by good governance, improved welfare, and efficient communication infrastructure. Additionally, the prior levels of FDI inflow strongly influence the outflow of investment from domestic investors

Foreign direct investment · Inflow · Multinational corporation · Pace · Panel data · Economic Growth and Development · Global trade and economics · International Business and FDI

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Open DOIOpen Access