The Impact of Tradeopenness Onfdi Inflows to Southern and Eastern Mediterranean Countries

Abstract

This article aims to assesseconometrically the impact of trade openness on the attractiveness of Southern and Eastern Mediterranean Countries (SEMCs) to FDI by using a Granger causality analysis for the period 1985-2016. The results showed a disparity, depending on the country being analyzed. Overall, they have proved insignificant to the extent that trade openness, despite its importance, seems insufficient, without being accompanied by other measures, to attract FDI to these countries.