Institutions, Foreign Direct Investment, and Economic Growth in North African Countries

Mhamed ali Khemakhem () and Zouheir Abida ()
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Mhamed ali Khemakhem: Higher Institute of Business Administration of Sfax
Zouheir Abida: Faculty of Economics and Management of Sfax

No 3405669, Proceedings of Business and Management Conferences from International Institute of Social and Economic Sciences

Abstract: This contribution investigates the causal interactions between foreign direct investment (FDI), economic freedom and economic growth in a panel of 4 countries of North Africa (Tunisia, Morocco, Algeria and Egypt) over the period 1980 - 2012. Using System Generalized Method of Moment (GMM) panel data analysis, we find strong evidence of a positive link between FDI and economic growth. We also find evidence that economic freedom appear to be working as a complement to FDI and, moreover, that the effect of FDI is more pronounced in the presence of the economic freedom variable. This means the countries promote greater freedom of economic activities gain significantly from the presence of multinational corporations (MNCs).

Keywords: Foreign direct investment; Economic freedom; Economic growth (search for similar items in EconPapers)
JEL-codes: C23 F21 O43 (search for similar items in EconPapers)
Pages: 13 pages
Date: 2016-04
New Economics Papers: this item is included in nep-afr and nep-ara
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Published in Proceedings of the Proceedings of the 3rd Business & Management Conference, Lisbon, Apr 2016, pages 102-114

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Persistent link: https://EconPapers.repec.org/RePEc:sek:ibmpro:3405669

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