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African Studies and Development Volume 7 Number 9 September 2015 ISSN 2141 - 2189 Journal of African Studies and Development Volume 7 Number 9 September 2015 ISSN 2141 - 2189 ABOUT JASD The Journal of African Studies and Development (JASD ) will be published monthly (one volume per year) by Academic Journals. Journal of African Studies and Development (JASD) is an open access journal that provides rapid publication (Monthly) of articles in all areas of the subject such as African literatures, sociolinguistic topics of cultural Interest, music, oral and written traditions etc. The Journal welcomes the submission of manuscripts that meet the general criteria of significance and scientific Excellence. Papers will be published shortly after acceptance. All articles published in JASD are peer-reviewed. Contact Us Editorial Office: [email protected] Help Desk: [email protected] Website: http://www.academicjournals.org/journal/JASD Submit manuscript online http://ms.academicjournals.me/ . Editors Dr Charles k Ayo Dr. Richard J. Mushi Director of Academic Planning, College of Arts and Sciences, Rural Public Policy Program, Covenant University, Ota. Ogun State, Mississippi Valley State University, Itta Bena MS. Nigeria USA Dr. Mary Ogechi Esere Prof Mary Khakoni Walingo Department of Counsellor Education, Maseno University University of Ilorin, Nigeria Kenya Ngoyi K Zacharie Bukonda Wichita State University Dr. Prudence Kwenda 1845 Fairmount Street, Wichita, KS 67260-0043, University of Limerick, USA Kemmy Business school Limerick, Ireland Dr. Vusi Gumede University of Witwatersrand’s Graduate Dr. Oliver Mtapuri School of Public and Development Management, Turfloop Graduate School of Leadership, University of Limpopo Specialization: Economics South Africa South Africa. Editorial Board Dr. Godswill Amechi Nnaji Prof. David Owusu-Ansah James Madison University College Of Health Sciences, Nnamdi Azikiwe University, Address 58 Bluestone Dr, Harrisonburg, VA 22807 Nnewi, Anambra State USA Dept. of Family Medicine, Nnamdi Azikiwe University Teaching Hospital, PMB 5025, Prof. Roger Tsafack Nanfosso Nnewi, Anambra State University of Yaounde II Nigeria Address P.O. BOX 6886 Yaounde Cameroon Dr. Alejandro Natal Martinez El Colegio Mexiquense Prof. Ratno Lukito Address Ex-Hda. Sta. Cruz de los Patos. Zinacantepec Faculty of Syariah and Law, State Islamic University Estado Sunan de Mexico Kalijaga Yogyakarta Mexico Jl. Marsda Adisucipto Yogyakarta Indonesia Dr. Samukele Hadebe Government of Zimbabwe Mr. Fred Ssango Office 210 Munhumutapa Building, Samora Machel Agribusiness Management Associates (AMA) Uganda Ltd Ave/Sam Nujoma, Uganda Harare Dr Michael Yanou Zimbabwe University of Buea Box 63, Buea Dr. Oyedunni Arulogun University of Ibadan Cameroon Department of Health Promotion & Education, Faculty of Muawya Ahmed Hussein Public Health, College of Medicine, University of Ibadan Dhofar University Nigeria Salalah 211, P.O.Box: 2509, CCBA Dennis Masaka Oman Great Zimbabwe University Ghoshal Tapas Department of Philosophy and Religious Studies, P.O. Box Bureau of Applied Economics & Statistics, Government of 1235, Masvingo, Zimbabwe West Bengal Address 1, Kiron Sankar Roy Road, New Secretariat Dr. Waleed Ibraheem Mokhtar El-azab Buildings, ‘B’ Block, 4th Floor, Kolkata-700 001, West EPRI (Egyptian Petroleum Research Institute) Bengal 1 , Ahmed El-Zomer St , 7the region , Nasr City , Cairo , India post code 11727 Egypt Dr. Teresa Kwiatkowska Universidad Autonoma Metropolitana-Iztapalapa Neil McBeath Av. San Rafael Atlixco No.186, Col.Vicentina C.P.09340 c/o The Language Centre Iztapalapa, México D.F. Sultan Qaboos University Mexico P.O. Box 43 PC 123 Dr. Alfred Ndi Al Khod University of Yaounde I Sultanate of Oman University of Yaounde I, Ecole Normale Supérieur, Bambili Christopher Gadzirayi Campus, Bambili, Bamenda, North West Region, Bindura University of Science Education Republic of Cameroon P.Bag 1020, Bindura Zimbabwe Journal of African Studies and Development Table of Contents: Volume 7 Number 9 September 2015 ARTICLES Research Economic Studies in Togo show that Private investment has a ripple effect on both foreign direct investment and public investment 231 Kossi AYENAGBO Reflections on the natural-resource development paradox in the Bakassi Area (Ndian Division) of Cameroon 239 Jude Ndzifon KIMENGSI and Cornelius Mbifung LAMBI Vol. 7(9), pp. 231-238, September, 2015 DOI: 10.5897/JASD2015.0328 Article Number: EF1A7B354999 Journal of African Studies and ISSN 2141 -2189 Copyright © 2015 Development Author(s) retain the copyright of this article http://www.academicjournlas.org/JASD Full Length Research Paper Economic Studies in Togo show that Private investment has a ripple effect on both foreign direct investment and public investment Kossi AYENAGBO Faculté des Sciences Economiques et Gestion/Université de Kara, BP: 43 Kara /Togo. Received 2 February, 2015; Accepted 15 June, 2015 In view of a macroeconomic context characterized by the revival of economic growth and the vision of having a better Togo in 2030, we have witnessed in recent years a major campaign to promote both domestic and foreign direct investment. Given the theoretical ambiguity of the relationship between these different types of investments, we offer in this paper an empirical validation of the interactions within the triptych FDI - public investment - domestic private investment. Estimates using a VECM showed that long-run private investment has a ripple effect on both foreign direct investment and public investment, which conversely also have a positive influence on domestic private investment. In addition, there is no significant relationship between public investment and FDI. Regarding the short term, there is a training of public investment in the previous period effect on FDI while domestic private investment tends to oust. Finally, an increase in FDI stimulates in the short term, both public and domestic private investment. Key words: Foreign direct investment, public investment, private investment, VECM, Togo. INTRODUCTION Achieving a rigorous and sustained economic growth is a investment presented as the main engine, which central question of the number of economic policies. A nourishes and stimulates growth when a number of primary design especially in developing countries shows factors combine to offer an environment conducive to that the improvement of the total well-being is human expansion. In the 90s, Asian countries experienced populations is beyond a simple goal of economic policy. economic growth with other regions in the world and Indeed, the studies on economic growth show an array of registered a rate of investment of the GDP of around diverse and varied designs to reduce poverty and spur 27%, but in the sub-Saharan Africa it was 17%. Despite sustainable economic growth. However, it is clear that unanimity on the role of investment and notwithstanding despite the different approaches, they many theories the herculean challenges ahead, it is clear that show an almost unanimous trend on the centrality of developing countries are characterized by low rates of E-mail: [email protected], [email protected]. Author agree that this article remain permanently open access under the terms of the Creative Commons Attribution License 4.0 International License 232 J. Afr. Stud. Dev. investment, and insufficient productivity gains. maintenance of infrastructure, education and health, In Togo, after independence the nation utilized valuable public investment could enhance the effectiveness of experiences from industrialized countries. It set up an private investment by creating a favorable environment ambitious public investment campaign to develop a for their profitability and their development. For example, national economy capable of meeting development investment in transport and communication could reduce challenges of the country. Unfortunately, inefficient transport costs, save time and increase profitability. management of the funds borrowed led to debt and large Public investment can theoretically be an obstacle to fiscal imbalances. Furthermore, the pessimistic economic private investment in terms of its financing mechanism, if conditions were exacerbated by the internal breakdown in bond issues or tax increases reduce the funds available the 90s coupled with reduced international cooperation to the private sector by hoarding of a part of domestic will greatly limited the financial resources of the state savings. The increase in public investment (IPU) could resulting in weak domestic investment. therefore lead to the collapse and paralysis of private investment. FDI, on one hand can stimulate a domestic investment through the introduction of new technologies Impact of both domestic and foreign private and different skills, on the other hand, crowd out investment mobilization domestic investment both through the strong competition Nowadays, after the failures of development policies and imposed by the use of scarce domestic resources the economic difficulties of previous decades, the (Helpman et al,. 2004). resumption of international cooperation strengthened by Given the ambiguity of the relationship between these reaching the completion point of the HIPC has revitalized three types of investment and the prospect of the new the Togolese economy. A series of reforms and growth dynamic, it is important to explore the interactions development strategies have emerged (like SCAPE). between these three types of investment. There is a need This consists of investment policies geared mainly provide an empirical
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