Foreign direct investment determinants in Mano River Union countries: Micro and macro evidence

We analyse the determinants of foreign direct investment (FDI) in Mano River Union countries (Cote d'Ivoire, Guinea, Liberia and Sierra Leone), using firm and country levels data to examine the differences and similarities in FDI drivers across these economies. Our results show that international trade, investment in infrastructures and access to credit positively impact FDI. While credit and trade have a similar influence across countries, the effect of investment is distinct, raising political implications for policy coordination and highlighting the relevance of cooperation among states. Also, policies that boost human capital, and political and economic stability, are relevant, as they augment FDI inflows.