THE ATTRACTIVENESS OF FOREIGN DIRECT INVESTMENT

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The study examines the impact of institutional quality on foreign direct investment (FDI) in the Democratic Republic of Congo, highlighting governance as a key factor. It reveals that while improved institutional quality correlates with increased FDI in the short term, it paradoxically leads to a significant decrease in net FDI inflows in the long term. This decline is attributed to persistent issues such as corruption, political instability, and internal conflicts, which hinder the DRC's appeal to foreign investors.