Determinants of Foreign Direct Investment in Mauritania: Evidence from an ARDL Approach (1986–2020)

Résumé

This study investigates the determinants of Foreign Direct Investment (FDI) in Mauritania from 1986 to 2020 using an Autoregressive Distributed Lag (ARDL) model. The results reveal a coexistence of long-run relationships among the variables. The analysis shows that natural resource rents and gross fixed capital formation exert a significant positive influence on FDI in the long term. Conversely, inflation, trade openness, and secondary education are negatively associated with FDI inflows. Traditional determinants such as GDP per capita growth and the exchange rate are found to be statistically insignificant. The short-term dynamics highlight a high sensitivity of FDI to economic shocks, reflected by a significant error correction mechanism. These findings suggest that Mauritania's attractiveness remains predominantly centered on its extractive sector. To foster sustainable and diversified FDI, economic policies should prioritize strengthening governance, improving institutional quality, and better aligning human capital development with the needs of investors.