The Empirical Analysis of Private Investment Behaviour on Growth Process in Cote d’Ivoire
DRAMA Bedi Guy Hervé Ph.D.

This study analyses and highlights the impact of private investment function on the process of economic growth in Côte d'Ivoire. Based on time series data from 1980 to 2016, a multiple linear regression model allowed us to assess the effect of private investment on the growth process using a two-stage cointegration method couple with error correction model. The empirical investigation results show that public investment, credit to the private sector, external debt link positively with private investment in long term. Moreover, real exchange rate and public investment, external debt and growth crowd in private investment in short run. These results also show that public investment plays an essential role in the function of private investment in the Ivorian economic growth process. The study therefore encourages government policy makers to continuously improve business environment for domestic private investment and creating other small and medium-sized enterprises to be globally expanded.

Full Text: PDF     DOI: 10.15640/jeds.v7n1a5