Analysis of the Influence Port Development on Economic Growth in Djibouti: In the Case of Doraleh Container Terminal

Djibouti shares an exceptional geostrategic position by being close to one of the busiest maritime routes, which makes it possible to have a crucial position for the movement of international trade transported by sea. This study analyses the influence of port development on Djiboutis economic growth in the case of Doraleh Container Terminal and identifies other significant variable factors. In this paper, we analyze the existence of an influence port development on economic growth and other variables, by applying the perspective of the multiple regression model in the analysis using Eviews software. the selected datasets in the analysis cover the period from 2010 to 2020. The result show that port development has a direct and strongly positive influence on the economic growth of Djibouti. In addition, this study also reveals that imports and exports trade is a mediating variable with a significant influence on economic growth in Djibouti. Furthermore, foreign direct investment has not directly and positive influences on Djibouti's economic growth. Therefore, we recommend that the Government of Djibouti attract and promote the benefits of foreign direct investment to enhance the development of various economic sectors and achieve significant economic growth in the coming years.