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

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Abdelkarim Jabri
Khaled Guesmi
Ilyes Abid

Keywords

Macro determinants of FDI, Dependences and Structural breaks, Panel co-integration Analysis

Abstract

This paper aims 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.

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