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Recent exports matter: export discoveries, FDI and Growth, an empirical assessment for MENA countries

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  • Dalila NICET- CHENAF (GREThA UMR CNRS 5113)
  • Eric ROUGIER (GREThA UMR CNRS 5113)

Abstract

Export diversification has become a priority goal for the development strategies of the MENA countries. In this paper, we aim at measuring the effects of exports’ diversification on growth in MENA countries. But we also try to assess the way new exports and FDI interact each others in the process of growth. Within the framework of an endogenous growth model, we claim that FDI can act as a complementary factor in the discovery process. The model is estimated by the system-GMM and we provide robust evidence that FDI do not necessarily have the same effect on growth according to the diversification level. We also show that while FDI have a positive and significant effect on the MENA countries’ growth, it is most probably rather linked to the direct effect on value added and employment than to the spillover effects of technological transfer.

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Paper provided by Groupe de Recherche en Economie Théorique et Appliquée in its series Cahiers du GREThA with number 2008-22.

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Date of creation: 2008
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Handle: RePEc:grt:wpegrt:2008-22

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Keywords: Export diversification; FDI; Growth; MENA; GMM system;

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Cited by:
  1. Belkacem Laabas and Walid Abdmoulah, . "Determinants of Arab Intraregional Foreign Direct Investments," API-Working Paper Series 0905, Arab Planning Institute - Kuwait, Information Center.

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