Determinants Effects of Foreign Direct Investment in Middle East and North Africa Region: Panel Cointegration Analysis
13 Pages Posted: 1 Jun 2012
Date Written: May 31, 2012
This paper aims to investigate the relationship between Foreign Direct Investment (FDI) inflows and their macroeconomic determinants in Middle East and North Africa (MENA) region during the period 1970-2010. Using recent panel data techniques, we take into account the both hypothesis economic dependencies and structural breaks. We find that economic openness, growth rate, economic instability and exchange rate have a long-run impact on FDI inflows in our panel.
Keywords: Macro determinants of FDI, Dependences and structural breaks, Panel cointegration analysis
JEL Classification: C33, F21
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