The impact of FDI on Poverty Reduction in North Africa

Marwa Lazreg () and Ezzeddine Zouari
Additional contact information
Marwa Lazreg: Université de Sousse, FSEG, CML

Working Papers from HAL

Abstract: The aim of this paper is to study the impact of FDI on poverty in the case of the North African country during the period from 1985 to 2005. The sample used in this paper consists of 6 countries of North Africa during the period from 1985 to 2005. So we can use the cointegration test. For the cointegration test, we have certified the existence of a cointegration relationship between the different series studied in our paper. Indeed, the result of the null hypothesis test of no cointegration was rejected at the 5% threshold, which explains the presence of a cointegration relationship. Also, to test the effect of FDI on poverty in the countries of North Africa, we will perform a FMOLS estimate. Thus, for the short-term dynamics, we noticed that FDI have a positive and significant impact on a threshold of 1% on the GINI index for the case of the countries of North Africa and a significant negative a threshold of 1% for the other two indicators of poverty; LPOV1_91 $ and LPOV3_1 $. Then we found that is statistically significant and positive at a 1% level. The LIDE variable measuring foreign direct investment has a negative impact on the Gini index to a threshold of 5%.For the Granger causality test; we notice that there is a unidirectional relationship between the consumption of energy and poverty Granger. Only the GINI index can cause Granger consumption of energy.

Keywords: IDF; poverty; North Africa; cointegration; FMOLS 2 (search for similar items in EconPapers)
Date: 2018-04-02
New Economics Papers: this item is included in nep-ara, nep-fdg and nep-int
Note: View the original document on HAL open archive server: https://hal.science/hal-01756624
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://hal.science/hal-01756624/document (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-01756624

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().