The impact of FDI on economic growth in Guinea

This paper analyzes the relationship between foreign direct investment (FDI) relative to GDP and economic growth. The research hypotheses were that FDI flows relative to GDP have a significant and positive impact on economic growth in both the short and long term.The results indicate that FDI has a positive and significant impact in the short term, while in the long term the impact is negative but not significant. This non-significance is essentially due to the orientation of these investments in the mining sector, where products are exported in their raw state, to the short lifespan of the companies, and to the system of corruption.It is therefore recommended to further strengthen the entrepreneurial ecosystem in Guinea, create conditions for the mobility of loanable funds for the productive system, improve the domestic debt payment system, diversify the destination of FDI for greater impact on the economy, and fight corruption.