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The nexus among foreign investment, domestic capital and economic growth: Empirical evidence from the MENA region

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  • Omri, Anis
  • kahouli, Bassem

Abstract

The objective of this paper is to estimate an econometric model for analyzing the interrelationship among foreign direct investment, domestic capital and economic growth in 13 MENA countries by using a ‘growth model’ framework and simultaneous-equation models estimated by the generalized method of moments (GMM) during the period 1990–2010. Our empirical results show that there is bi-directional causal relationship between foreign investment and economic growth, as well as domestic capital and economic growth, and there is uni-directional causal relationship from foreign direct investment to domestic capital for the region as a whole.

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  • Omri, Anis & kahouli, Bassem, 2014. "The nexus among foreign investment, domestic capital and economic growth: Empirical evidence from the MENA region," Research in Economics, Elsevier, vol. 68(3), pages 257-263.
  • Handle: RePEc:eee:reecon:v:68:y:2014:i:3:p:257-263
    DOI: 10.1016/j.rie.2013.11.001
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    Cited by:

    1. Samir, Saidi & Shahbaz, Muhammad & Akhtar, Pervaiz, 2018. "The Long-Run Relationship between Transport Energy Consumption and Transport Infrastructure on Economic Growth in MENA Countries," MPRA Paper 85037, University Library of Munich, Germany, revised 06 Mar 2018.
    2. repec:dug:actaec:y:2017:i:6:p:174-189 is not listed on IDEAS
    3. Anis Omri & Anissa Chaibi, 2014. "Nuclear energy, renewable energy, and economic growth in developed and developing countries : A modelling analysis from simultaneous-equation models," Working Papers 2014-188, Department of Research, Ipag Business School.
    4. repec:eee:transa:v:111:y:2018:i:c:p:78-95 is not listed on IDEAS
    5. Omri, Anis, 2018. "Entrepreneurship, sectoral outputs and environmental improvement: International evidence," Technological Forecasting and Social Change, Elsevier, vol. 128(C), pages 46-55.
    6. Bassem Kahouli & Anis Omri & Anissa Chaibi, 2014. "Environmental Regulations, Trade, and Foreign Direct Investment: Evidence from Gravity Equations," Working Papers 2014-189, Department of Research, Ipag Business School.
    7. Ketenci, Natalya, 2017. "The Impact of the Global Financial Crisis on the Economic Development in the Eurasian Region," MPRA Paper 83780, University Library of Munich, Germany, revised 2017.
    8. Sayef Bakari, 2017. "The Three-Way Linkages Between Export, Import And Economic Growth: New Evidence From Tunisia," Journal of Smart Economic Growth, , vol. 2(3), pages 13-53, December.
    9. Natalya Ketenci, 2015. "Economic growth and capital flow in European countries in pre and post-crisis periods," Cuadernos de Economía - Spanish Journal of Economics and Finance, Asociación Cuadernos de Economía, vol. 38(108), pages 163-180, Septiembr.
    10. Ben Youssef, Adel & Hammoudeh, Shawkat & Omri, Anis, 2016. "Simultaneity modeling analysis of the environmental Kuznets curve hypothesis," Energy Economics, Elsevier, vol. 60(C), pages 266-274.
    11. repec:eee:riibaf:v:42:y:2017:i:c:p:353-364 is not listed on IDEAS
    12. Bakari, Sayef, 2017. "The Nexus between Export, Import, Domestic Investment and Economic Growth in Japan," MPRA Paper 76110, University Library of Munich, Germany.
    13. Omri, Anis & Kahouli, Bassem, 2014. "Causal relationships between energy consumption, foreign direct investment and economic growth: Fresh evidence from dynamic simultaneous-equations models," Energy Policy, Elsevier, vol. 67(C), pages 913-922.
    14. Bee Wah Tan & Chor Foon Tang, 2016. "Examining the Causal Linkages among Domestic Investment, FDI, Trade, Interest Rate and Economic Growth in ASEAN-5 Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 6(1), pages 214-220.
    15. Bakari, Sayef & Mabrouki, Mohamed & Othmani, Abdelhafidh, 2018. "The Six Linkages between Foreign Direct Investment, Domestic Investment, Exports, Imports, Labor Force and Economic Growth: New Empirical and Policy Analysis from Nigeria," MPRA Paper 88259, University Library of Munich, Germany.
    16. Chen, George S. & Yao, Yao & Malizard, Julien, 2017. "Does foreign direct investment crowd in or crowd out private domestic investment in China? The effect of entry mode," Economic Modelling, Elsevier, vol. 61(C), pages 409-419.
    17. repec:gam:jecomi:v:6:y:2018:i:1:p:18-:d:136954 is not listed on IDEAS
    18. Mohamed Abdouli and Sami Hammami, 2017. "Exploring Links between FDI Inflows, Energy Consumption, and Economic Growth: Further Evidence from MENA Countries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 42(1), pages 95-117, March.
    19. repec:eee:energy:v:145:y:2018:i:c:p:388-399 is not listed on IDEAS
    20. repec:eee:eneeco:v:68:y:2017:i:c:p:19-30 is not listed on IDEAS
    21. Omri, Anis & Ben Mabrouk, Nejah & Sassi-Tmar, Amel, 2015. "Modeling the causal linkages between nuclear energy, renewable energy and economic growth in developed and developing countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 1012-1022.
    22. repec:spr:jknowl:v:8:y:2017:i:1:d:10.1007_s13132-015-0323-y is not listed on IDEAS
    23. Adrian Petre, 2015. "The Impact of Foreign Direct Investments on Economic Growth in Romania," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 18(58), pages 165-174, December.
    24. Adams, Samuel & Opoku, Eric Evans Osei, 2015. "Foreign direct investment, regulations and growth in sub-Saharan Africa," Economic Analysis and Policy, Elsevier, vol. 47(C), pages 48-56.
    25. repec:eee:joecas:v:12:y:2015:i:2:p:124-132 is not listed on IDEAS

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