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Foreign Direct Investment and LDC Exports: Evidence from the MENA Region

Bassam M. AbuAl-Foul and Mohamed Soliman
Authors registered in the RePEc Author Service: Bassam Abu Al-Foul

Emerging Markets Finance and Trade, 2008, vol. 44, issue 2, 4-14

Abstract: This paper examines the effect of foreign direct investment (FDI) on manufacturing exports in four Middle Eastern and North African (MENA) countries. The sensitivity of merchandise exports, manufacturing exports, and the share of manufacturing exports in total merchandise exports to two measures of FDI activity is tested using panel data spanning 1975-2003. The findings suggest that FDI activity positively affects the host country's merchandise and manufacturing exports. Nevertheless, FDI activity is still short of generating any increase in the share of manufacturing exports in merchandise exports.

Keywords: developing countries; exports; foreign direct investment. (search for similar items in EconPapers)
Date: 2008
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