This study investigates the impact of trade openness on the economic performances of selected Middle East and North Africa (MENA) countries while incorporating elements of domestic investment into the empirical analysis in the wake of dynamic sentiments for trade liberalization among nations in recent times. The study covers an empirical analysis of a panel of observations from the selected countries within the framework of the Fully Modified Least Square (FMOLS), and the Dynamic Ordinary Least Square (DOLS) regression techniques. The empirical results affirm the existence of a long-run relationship among the variables. However, while domestic investment and the size of the labor force significantly impact economic growth in the positive direction among these countries, trade openness was found to be negatively impacting on growth for the period of the study. It is therefore recommended that cogent effort should be directed towards investments that are crucial for the improvement of labor productivity and production value chains in the domestic economy to dissuade or minimize the rate of export of raw primary commodities. Also, adequate steps should be taken to improve the overall business environment, remove trade impediments, and strengthen institutions among the countries in the region to harness the benefits of trade in our increasingly globalized world.
The goal of this study is to look into the challenges and opportunities for investing in Afghanistan while coalition forces are present in the country. The World Bank (WB) enterprise survey was used for this, with dependent dummy variables being access to finance, land, electricity, being in a stable political environment, taxes, and security, and dependent variables being age, small, medium, and large enterprises, experience of top level managers, and firm ages. The most significant and significant impediments for investors and enterprises are access to land, access to electricity, access to a secure environment, and taxes.
Foreign direct investment (FDI) contributes to the economic development of a country via technology spillovers, the production of human capital, and the integration of international commerce. Remittances are a well-known useful source of revenue for developing nations, and they are growing in popularity. Increased GDP, funding of investments and the reduction of poverty are all advantages for economies. In this study, we examined the impact of FDI and remittances on the economies of the five selected SAARC countries, consisting of Afghanistan, Bangladesh, India, Sri Lanka, and Pakistan. The data was used for the period of 2008-2020. For the mentioned study, co-integrating regression was used to investigate the long-run association between these variables. In order to know the impact of the independent variables on the dependent variables, we used the Fully Modified Ordinary Least Square and Dynamic Ordinary Least Square regression tests which are used for co-integrating and non stationary data. The results suggested that foreign direct investment (FDI) and remittances have positive effects on the economic growth of the panel nations. Fur-hermore, we conducted the Granger causality test, and the findings revealed that remittances and economic growth are both influenced by each other in a bidirectional way, and no cauality relationship between FDI and economic growth.
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