The impact of foreign direct investment on the Angola economy

This study basically aims to analyze the impact of foreign direct investment made in Angola on the Angola economy, the type of impact and the significance of this impact, determine whether or not there is a long run relationship between the Angola economy and foreign direct investment made in Angola, determine whether or not there is a causality relationship between the Angola economic growth and foreign direct investment made in Angola and this relationship direction and reveal the dimension, status and scope that the foreign direct investment made in Angola has reached since the past to the present. To achieve the proposed objectives statistical methods related to the quantitative approach are used for collecting and analyzing data. Statistical methods of econometric models based up on economic time series are used in data analysis. In the first stage of the analysis, because of the used data are time series data, the stationarity analysis is carried out with the Dickey-Fuller Unit Root Test in order to research for stationarity characteristics of the variables. After that the Least Squares Method is used for estimating the set econometric regression model. It is also performed the ARDL Limit Test to analyze the long run relationship among the variables and the Granger Causality Test for determining the causality status of the variables. The data acquisition method based up on the secondary data acquisition technic that consists of publications from public and private institutions it is used in the data collection process. Therefore, analyzed data was acquired from electronic database of the Central Bank of Republic of Angola, World Bank Group and other private institutions. After the data analyzing process, was concluded that the foreign direct investment made in Angola has a positive impact on the Angola economy, there is a long run relationship between the Angola economy and foreign direct investment made in Angola, the Angola economic growth causes the foreign direct investment made in Angola and the foreign direct investment made in Angola does not cause the Angola economic growth.