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Institutional Reforms Debate and FDI Flows to MENA Region: Does One .Best. Fit All?

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  • Mina, Wasseem Michel

Abstract

The paper revisits the policy debate on institutional reform approaches to property rights protection and empirically examines it in the context of FDI flows to the Middle East and Northern Africa region (MENA).Using panel data on 11 MENA countries for the period 1991.2007 and adopting feasible generalized least squares estimation methodology, the paper finds a positive influence of improvement in the risk of investment expropriationin non-Gulf Cooperation Council (GCC) MENA countries and of bilateral investment treaties (BITs) in GCC countries. The joint influence of domestic institutional functions and BITs is positive in specifications containing investment expropriation risk and government stability in non-GCC MENA countries, and corruption in GCC countries. Results have important policy implications for the institutional reform approach to be adopted.

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Bibliographic Info

Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number UNU-WIDER Research Paper WP2011/50.

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Length: 45
Date of creation: 2011
Date of revision:
Handle: RePEc:unu:wpaper:wp2011-50

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Keywords: property rights protection; bilateral investment treaties; foreign direct investment; institutional reforms; MENA; heterogeneity;

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References

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  1. Rodolphe Desbordes & Vincent Vicard, 2007. "Foreign Direct Investment and Bilateral Investment Treaties an International Political Perspective," Documents de travail du Centre d'Economie de la Sorbonne bla07045, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
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Citations

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Cited by:
  1. Mina, Wasseem, 2012. "Beyond FDI: The Influence of Bilateral Investment Treaties on Debt," MPRA Paper 51920, University Library of Munich, Germany.
  2. Elsamadisy, Elsayed Mousa & Alkhater, Khalid Rashid & Basher, Syed Abul, 2013. "Pre- versus Post-Crisis Central Banking in Qatar," MPRA Paper 45310, University Library of Munich, Germany.
  3. Mina, Wasseem Michel, 2012. "The Institutional Reforms Debate and FDI Flows to the MENA Region: The “Best” Ensemble," World Development, Elsevier, vol. 40(9), pages 1798-1809.
  4. Mina, Wasseem, 2013. "Political Risk Guarantees and Capital Flows: The Role of Bilateral Investment Treaties," MPRA Paper 51811, University Library of Munich, Germany.
  5. Mina, Wasseem, 2013. "United Arab Emirates FDI Outlook," MPRA Paper 51810, University Library of Munich, Germany.

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