FDI and Exports Diversification in Arab Countries

Pierre-Guillaume Méon and Khalid Sekkat

No 816, Working Papers from Economic Research Forum

Abstract: The diversity of MENA countries’ exports has increased together with flows of FDI to the region. This paper investigates whether this association results from a more general relation between FDI inflows and the diversity of a country’s exports. At odds with the presumption of the literature, we find no evidence of such a relation. However, we find that a more skilled workforce and better institutions are correlated with more diversified exports.

Pages: 31
Date: 2013-12, Revised 2013-12
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Published by The Economic Research Forum (ERF)

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