مجلة البحوث الاقتصادية والمالية
Volume 13, Numéro 1, Pages 678-695
2026-06-05

The Impact Of Chinese Foreign Direct Investment On Economic Growth In Ethiopia An Econometric Study For The Period 2003-2024

Authors : Aouam Nesrin .

Abstract

This study examines the impact of Chinese foreign direct investment (FDI) on economic growth in Ethiopia from 2003 to 2024, using a VAR model. The results indicate a reciprocal relationship between Chinese indirect investment and the economic development of Ethiopia. Economic growth in Ethiopia acts as an attraction for Chinese FDI, while Chinese FDI, in turn, contributes to supporting economic growth in Ethiopia through multiple channels. This reflects the structural interaction between the two variables in the Ethiopian economy. Keywords: foreign direct investment; economic growth; Chinese FDI; Ethiopia; VAR model JelClassificationCodes:F21, O47, O19,O55, C32

Keywords

foreign direct investment ; economic growth ; Chinese FDI ; Ethiopia ; VAR model