Determinants of Sectoral and Sub-Sectoral FDI: Evidence from the MENA Region

Badreldin, A., and Hassan, S.M. (2021). Determinants of Sectoral and Sub-Sectoral FDI: Evidence from the MENA Region. MSR Working paper Nr. 04-2021.

46 Pages Posted: 3 Aug 2021

See all articles by Ahmed Mohamed Badreldin

Ahmed Mohamed Badreldin

University of Marburg - School of Business & Economics; University of Marburg - Center for Near and Middle Eastern Studies (CNMS)

Sherif Maher Hassan

Suez Canal University - Faculty of Commerce; M&S Research Hub; University of Marburg, Center for Near and Middle Eastern Studies (CNMS); Economic Research Forum (ERF); The American University in Cairo

Date Written: July 8, 2021

Abstract

Ignoring the heterogeneity of determinants across sectoral and sub-sectoral FDI begets flawed inferences in the mainstream literature. Significant drivers of FDI inflows vary across sectors and sub-sectors. Using UNCTAD Database of FDI from 2004 o 2018, we run GMM, Fixed Effects, and 3SLS estimations across a global sample of 198 countries and a regional sample of 17 the Middle East and North African (MENA) countries. We select the common determinants of FDI in the literature and re-visit their stylized evidence of significance and magnitude across four main FDI sectors, total, primary, secondary and tertiary, as well as across 29 subsectors. Our results confirm the divergence of the magnitude, sign, and significance of the determinants across sectors and countries’ samples.

Keywords: FDI, GMM, 3SLS, MENA

JEL Classification: E61, F41, F32

Suggested Citation

Badreldin, Ahmed Mohamed and Hassan, Sherif Maher, Determinants of Sectoral and Sub-Sectoral FDI: Evidence from the MENA Region (July 8, 2021). Badreldin, A., and Hassan, S.M. (2021). Determinants of Sectoral and Sub-Sectoral FDI: Evidence from the MENA Region. MSR Working paper Nr. 04-2021. , Available at SSRN: https://ssrn.com/abstract=3882832. or http://dx.doi.org/10.2139/ssrn.3882832

Ahmed Mohamed Badreldin (Contact Author)

University of Marburg - School of Business & Economics ( email )

Am Plan 2
Marburg, D-35037
Germany

University of Marburg - Center for Near and Middle Eastern Studies (CNMS) ( email )

Deutschhausstraße 12
Marburg, 35037
Germany

Sherif Maher Hassan

Suez Canal University - Faculty of Commerce

Ismailia
Egypt

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