IDEAS home Printed from https://ideas.repec.org/a/bla/afrdev/v28y2016i1p64-74.html
   My bibliography  Save this article

Does Economic Freedom Enhance the Impact of Foreign Direct Investment on Economic Growth in North African Countries? A Panel Data Analysis

Author

Listed:
  • Nahed Zghidi
  • Imen Mohamed Sghaier
  • Zouheir Abida

Abstract

type="main" xml:lang="en"> This article investigates the causal interactions between foreign direct investment (FDI), economic freedom and economic growth on a panel of four North African countries (Tunisia, Morocco, Algeria and Egypt), over a 5-year period from 1980 to 2013. Using the System Generalized Method of Moments (GMM) in a panel data analysis, we found strong evidence of a positive link between FDI and economic growth. We also found that economic freedom appears to be working as a complement to FDI and that the effect of FDI is more pronounced in the presence of the economic freedom variable. This means that the countries which promote greater freedom of economic activities benefit more from the presence of multinational corporations (MNCs).

Suggested Citation

  • Nahed Zghidi & Imen Mohamed Sghaier & Zouheir Abida, 2016. "Does Economic Freedom Enhance the Impact of Foreign Direct Investment on Economic Growth in North African Countries? A Panel Data Analysis," African Development Review, African Development Bank, vol. 28(1), pages 64-74, March.
  • Handle: RePEc:bla:afrdev:v:28:y:2016:i:1:p:64-74
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:bla:afrdev:v:31:y:2019:i:2:p:216-229 is not listed on IDEAS
    2. J. Paul Dunne & Nicholas Masiyandima, 2017. "Bilateral FDI from South Africa and Income Convergence in SADC," African Development Review, African Development Bank, vol. 29(3), pages 403-415, September.
    3. Njangang Henri & Nembot Ndeffo Luc & Nawo Larissa, 2019. "The Long‐run and Short‐run Effects of Foreign Direct Investment on Financial Development in African Countries," African Development Review, African Development Bank, vol. 31(2), pages 216-229, June.
    4. repec:bla:afrdev:v:29:y:2017:i:1:p:92-102 is not listed on IDEAS
    5. repec:bla:afrdev:v:30:y:2018:i:1:p:86-99 is not listed on IDEAS
    6. Philip Ifeakachukwu Nwosa & Temidayo Oladiran Akinbobola, 2016. "Capital Inflows and Economic Growth in Nigeria: The Role of Macroeconomic Policies," African Development Review, African Development Bank, vol. 28(3), pages 277-290, September.
    7. repec:bla:afrdev:v:29:y:2017:i:2:p:211-222 is not listed on IDEAS
    8. repec:bla:afrdev:v:30:y:2018:i:1:p:112-130 is not listed on IDEAS
    9. repec:gam:jeners:v:10:y:2017:i:10:p:1578-:d:114746 is not listed on IDEAS

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:afrdev:v:28:y:2016:i:1:p:64-74. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley Content Delivery). General contact details of provider: http://edirc.repec.org/data/afdbgci.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.