The Relationship between Economic Freedom and FDI versus Economic Growth: Evidence from the GCC Countries
Hichem Dkhili () and
Lassad Ben Dhiab ()
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Hichem Dkhili: College of Business Administration, Northern Border University, Arar 91431, Saudi Arabia
Lassad Ben Dhiab: College of Business Administration, Northern Border University, Arar 91431, Saudi Arabia
Journal of Risk and Financial Management, 2018, vol. 11, issue 4, 1-17
This study aims to explain the role of economic freedom in attracting foreign investments and thus raising the level of economic growth. Through a study based on a sample composed of the Gulf Cooperation Council (GCC) countries. A standard model consisting of GCC countries (Saudi Arabia, United Arab Emirates, Qatar, Kuwait, and Oman) was used during the period from 1995 to 2017. We based on the analytical descriptive and secondly, we used a multivariate analysis based on the panel unit root test, the cointegration and finally the regression Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) following the existence of a long-term integration, which includes the modern standard methods to determine the role of economic freedom in raising foreign direct investment and thus economic growth in the second stage. The research findings from GCC countries support the literature, suggesting that there are indeed some indications that greater levels of economic freedom support higher rates of economic growth in a country.
Keywords: economic growth; economic freedom; foreign direct investment; panel data (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jjrfmx:v:11:y:2018:i:4:p:81-:d:184762
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