An Investigation of the Long-Run and Causal Relationships between Economy Performance, Investment and Port Sector Productivity in Cote d’Ivoire

Abstract

This study used the Autoregressive Distributed Lag (ARDL) Bounds testing approach and Toda-Yamamoto Non-granger causality test to analyze respectively the long-run and causal relationships among economy performance, foreign direct investment, domestic investment and port sector production output in Cote d'Ivoire over the period 1980-2013. The empirical results illustrate that economy performance, foreign direct investment and domestic investment are significant in explaining the productivity of port sector. Therefore, the study suggests focusing on investment strategies that involve private (foreign and domestic) participation in projects dedicated to improve the safety, quality of operations in the sector and transport connectivity.