Abstract—The aim of this paper is to develop a foreign direct investment inflows(FDI) and evaluate its relationship between trade openness and economic growth for Mali by using Autoregressive distributed Lag approach (ARDL) models over the period of 1980 to2016.The first results indicate that the uni-directional causality relationships between FDI, economic growth and trade. Furthermore, the empirical results show FDI inflows affects economic growth positively in the short and the long run while trade openness positively affects economic growth in the short run and negatively in the long run. While previous literature review focuses on attract foreign direct investment, this paper evaluates the impact of FDI and trade openness on the economic growth. This result shows the evidence of uni-directional causality between FDI and trade on economic growth offer new insights into Mali’s openness policy for enhancing growth of FDI inflows and trade.

Index Terms—Foreign direct investment, economic growth, trade, Mali, ARDL cointegration.

KanKou Hadia Fofana is with Business and Management and Beijing Institute of Technology, Beijing Haidian, China (email:fofanakankouhadia@yahoo.fr).
Enjun Xia is with Schools of Management and Economics and Beijing Institute of Technology, China.
Mamadou Bado Traore is with Business and Management and Beijing Institute of Technology, Beijing Haidian, China. Mamadou Bado Traore is also with Schools of Management and Economics and Beijing Institute of Technology, China.

Cite: KanKou Hadia Fofana, Enjun Xia, Mamadou Bado Traore, "The Causal Linkage between Foreign Direct Investment, Trade and Economic Growth in Mali: An Application of the ARDL bound Testing Approach," International Journal of e-Education, e-Business, e-Management and e-Learning vol. 9, no. 4, pp. 296-305, 2019.