The effect of foreign direct investment (FDI) on economic growth: The case of AMU

Aicha Aouar and Asma Tahraoui
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Aicha Aouar: University Abou Bekr Belkaid, Faculty of Economy, Tlemcen, Algeria
Asma Tahraoui: University Abou Bekr Belkaid, Faculty of Economy, Tlemcen, Algeria

Review of Socio - Economic Perspectives, 2023, vol. 8, issue 4, 59-67

Abstract: This study analyses the impact of foreign direct investment (FDI) on economic growth (GDP) in the Arab Maghreb Union (AMU). For this purpose, it uses Angel Granger cointegration method for the period from 1980-2021. The estimation results show that these two variables are cointegrated. We found that FDI has a significant positive impact on economic growth, which confirms that FDI is an important factor in promoting Maghreb economic growth. The causality test show that there exists a directional causality from GDP to FDI in AMU.

Keywords: foreign direct investment; economic growth; Angel Granger cointegration; AMU. (search for similar items in EconPapers)
JEL-codes: C32 F21 F62 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:aly:journl:202326

DOI: 10.19275/RSEP169

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