This chapter deliberates on the effects of FinTech on economic performance in the context of political instability in MENA zone countries. Using a multiple regression model to estimate time series data based on a sample of 10 MENA zone countries for 2011, 2014, and 2017, the study contends that FinTech's lending activities increase inflation and that this effect could be interestingly moderated by sound policies and regulations. In addition, the authors find empirical support for the FinTech's role as a driver of economic growth and a breeding ground for innovative projects in a context of freedom of expression, association, and media. In terms of practical implications, decision makers are asked to formulate and implement sound policies and regulations that permit and promote the positive role of FinTech in terms of economic performance.
PurposeThe purpose of this paper is to study the impact of economic factors on foreign direct investment (FDI) inflows into Asian region before and after the COVID-19 pandemic.Design/methodology/approachThe study used the generalized method of moments (GMM) technique to examine the impact of economic growth, domestic investment and trade openness on FDI in the Asian region, in two periods from 1996 to 2018 and from 2019 to 2020.FindingsIn the pre-COVID-19 period, the estimated result shows that the economic growth, domestic investment, imports and exports positively impact FDI. In the post-COVID-19 period, the FDI is influenced by the strength of the economic characteristics of the region. The main findings indicate that economic growth has a positive and significant effect on FDI inflows into Asia. The findings also show that the economic resilience to attract FDI in Asia is significantly affected by economic growth and positively affected by trade openness and government responses during the pandemic.Originality/valueThe study suggests the Asian governments increasing the domestic investment and improving the quality of trade openness.
The chapter identifies the main determinants of FDI and the factors that constitute the main obstacles to foreign investment attractiveness in a region affected by economic and political instability and even conflict and where investors may face a multitude of political, economic, and security risks. The sample includes 14 Arab countries over the period of 2003-2017. To determine the factors that explain the probability of attracting investment inflows in MENA countries, the study uses a multiple regression model to estimate data in a time series. The authors also use the World Bank's governance indicators to assess the quality of the Arab institutional framework. The results of the panel data estimates through three different regressions reveal that macroeconomic instability combined with political instability constitutes an obstacle to investment. On practical implications, the study suggests that, in general, economic managers should take some economic policy measures to reduce or mitigate risks to encourage foreign investors to invest in MENA countries.
The purpose of the chapter is twofold. Firstly, the authors intend to identify the main determinants of Greenfield FDI in a context of political and economic changes by choosing inflation, trade freedom, and investment freedom as macroeconomic variables and political instability as an institutional variable. Secondly, they determine which environmental sector may affect this mode of foreign investment in MENA region. Using dynamic panel models on a sample of 13 countries over the period 2010-2018, they perform econometric modeling to measure the relationship between Greenfield FDI, macroeconomic aggregates, and the relationship between FDI and the environmental sector. They find that trade openness stimulates foreign investment in MENA region and that the lack of inflation control may disrupt the inflow of Greenfield FDI since it reflects the economic stability of the host countries. Furthermore, there is a positive relationship between Greenfield FDI and environmental sectors. The chapter suggests some relevant practical implications to improve the attractiveness of Greenfield FDI in the MENA region.
This article analyzes the complexity of the linkages between corporate social responsibility (CSR) and firm performance in Morocco and to decompose this complexity through a bidirectional sense of causality. Using data surveyed from 74 Moroccan listed firms, we conduct an econometric modeling to measure this relationship bilaterally and to investigate the underlying factors behind this association. The empirical study proves the existence of a positive association between CSR and firm performance in both directions in the Moroccan context and suggests that the more social enterprises are, the more they achieve better financial results. The mutual linkage between social and financial aspects allows us to draw some managerial implications and set up further research directions.
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