Determinants Of Foreign Direct Investment In MENA Region: Panel Co-Integration Analysis

Abstract

<p>This paper aims<strong> </strong>to investigate the relationship between Determinants of Foreign Direct Investment (FDI) inflows and their determinants in MENA (Middle East and North Africa) region during the period 1970- 2010. Using panel data techniques, we take into account the both hypothesis economic dependencies and structural breaks. We find that the macro determinants like openness, growth rate, exchange rate, and economic instability have a long-run impact on FDI inflows in our panel.</p>

The impact of the local SMEs sector on FDI and the mediating effect of IFRS adoption in developing economies: The case of Algeria

“…Additionally, for the control variables, our results of the first specification, our base model, show that TOP is associated positively with FDI inflows in the long-run. These results are in line with a large number of prior studies such as Chakrabarti (2001), Sekkat and Veganzones (2007), Moosa (2009), Rogmans (2013, Jabri et al (2013), Jabri and Brahim (2015), and Khayat (2017). The coefficient of TINF is negative and significant at 5% in the first model with a coefficient value of -0.015, implying that increasing in telecommunication infrastructure is associated with lower increase in FDI inflows in Algeria.…”

“…In this respect, we consider three control variables in our empirical model. Firstly, the total value of exports and imports of goods and services to GDP ratio is used as a proxy for trade openness (Jabri et al, 2013;Jabri and Brahim, 2015;Khayat, 2017). Secondly, the number of fixed and mobile phone subscriptions per thousand of the population is adopted to capture for telecommunications infrastructure indicator (TINF) (Rudra et al, 2017;Suh and Khan, 2003).…”

“…Secondly, the number of fixed and mobile phone subscriptions per thousand of the population is adopted to capture for telecommunications infrastructure indicator (TINF) (Rudra et al, 2017;Suh and Khan, 2003). Third, Gross Domestic Product (GDP) annual growth rate is considered to proxy for market size (Sekkat and Veganzones, 2007;Moosa, 2009;Mina, 2012;Jabri et al, 2013;Jabri and Brahim, 2015;Abdouli and Hammami, 2017). All these control variables are expected to be more attractive for FDI inflows.…”

Institutional Determinants Of Foreign Direct Investment In MENA Region: Panel Co-Integration Analysis

“…As a matter of fact, some researchers put forward that FDI is highly persistent, showing that the long-term effect of a variety of factors on FDI is much larger than that in the short term (Kamaly, 2003). Others, such as Jabri et al (2013), have also studied these effects in the MENA countries taking into account the economic dependencies between these countries and the effects of the economic crisis where the FDI evolution is affected by unclear periods. Taking into account all the reasons mentioned above, this research aims at investigating the effects of FDI factors in MENA region given the existence of economic dependencies between countries and effects of economic crisis where the evolution of the FDI is subject to unclear periods with an unsatisfactory MENA performance compared to other regions.…”

Factors affecting foreign direct investment: Evidence at foreign technology enterprises in Vietnam

“…Hunady and Orviska (2014) also showed the factor affected the FDI in EU countries. Jabri and Brahim (2015) and Jabri et al (2013) also showed the determinants of FDI in the MENA region. This is the basis for my research in this paper.…”