Foreign Direct Investments Net Inflows into Togo: Modelling and Forecasting
Katchoou Lonzozou, TAO Xiangxing, WANG Wei

Abstract
Modelling and forecasting over the next 13 years, the foreign direct investments net inflows into Togo, was examined in this study using Box-Jekins’s methodology. The annual data on the foreign direct investment (FDI) net inflows used in this study spans from 1970 to 2020. The ADF test shows that the FDI net inflows into Togo is I (1). Based on the AIC and the Ljung-Box test, ARIMA (3,1,0) was identified to be the best, adequate and stable model for capturing the dynamism of the FDI net inflows into Togo. The results of the study show that the predicted net inflows of FDI into Togo are likely to exhibit a downward trend over the next 13 years. It also shows that throughout the next 13 years, the expected net inflows of FDI into Togo are likely to be negative and oscillating. Several recommendations have been made to help government and policy makers to act effectively to attract investors toward Togo.

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