FDI and Growth in the MENA countries: Are the GCC countries Different?

Mouna Gammoudi, Mondher Cherif () and Simplice Asongu
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Mondher Cherif: Université de Reims Champagne Ardenne, France

No 16/015, Research Africa Network Working Papers from Research Africa Network (RAN)

Abstract: This paper examines the relationship between Foreign Direct Investment (FDI) and per capita Gross Domestic Product (GDP) in the Middle East and North Africa (MENA) region for the period 1985-2009. The empirical evidence is based on an endoeneity-robust Generalised Method of Moments. Results show that the effect of FDI on per capita income in the Gulf Cooperation Council (GCC) countries is positive but negative in Non-GCC countries. Results also reveal that in contrast to the GCC countries, the financial openness policy in the Non-GCC countries have reduced the benefits of FDI on growth, this finding is explained by the fact that most of the Non-GCC countries that have engaged in the process of financial reforms have poor quality of institutions. These results are confirmed with both annual data and five year average data.

Keywords: FDI; growth; GMM; financial openness; Institutions (search for similar items in EconPapers)
JEL-codes: C52 F21 F23 O40 P37 (search for similar items in EconPapers)
Pages: 42
Date: 2016-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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http://publications.resanet.org/RePEc/abh/abh-wpap ... e-MENA-countries.pdf Revised version, 2016 (application/pdf)

Related works:
Working Paper: FDI and Growth in the MENA countries: Are the GCC countries Different? (2016)
Working Paper: FDI and Growth in the MENA countries: Are the GCC countries Different? (2016)
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