Institutional and Economic Determinants of FDI: A Comparison between the European Union and the MENA Region
AbstractFDI flows to the MENA region have been relatively low when compared to neighboring countries. This paper aims at investigating whether there are significant region-specific factors for FDI performance in MENA and EU regions. We employ a panel data approach and use the inward FDI performance index as dependent variable, including both institutional and macroeconomic variables as FDI determinants. The results reveal similar impact of the economic factors but significant differences between the two regions with regard to institutional determinants particularly investment climate, government size and trade barriers. This leads to the conclusion that more appropriate policies are needed in the MENA region in order to develop a friendly economic and institutional environment to attract foreign investors.
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Bibliographic InfoArticle provided by De Gruyter in its journal Review of Middle East Economics and Finance.
Volume (Year): 8 (2012)
Issue (Month): 1 (August)
Contact details of provider:
Web page: http://www.degruyter.com
Other versions of this item:
- José Caetano & Aurora galego, 2009. "FDI in the European Union and Mena Countries: Institutional and Economic Determinants," CEFAGE-UE Working Papers 2009_09, University of Evora, CEFAGE-UE (Portugal).
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
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