IDEAS home Printed from https://ideas.repec.org/a/ibn/ijefaa/v15y2023i10p32.html
   My bibliography  Save this article

Factors of FDI and their Impact on the Moroccan Economy: An Empirical Investigation Using the ARDL Approach

Author

Listed:
  • Anass Arbia
  • Khalid Sobhi
  • Mohamed Karim

Abstract

Foreign direct investment (FDI) has gained importance in recent years as an essential component of economic growth. This work has a dual focus- on the one hand, it aims to identify the main determinants of FDI in Morocco, and on the other, it attempts to measure the effect of FDI on the Moroccan economy over the period 1990-2020. We have adopted an approach using the Autoregressive Staggered Lag (ARDL) model, as proposed by Pesaran et al. (2001). The main findings of this study indicate that high economic performance, well-trained human capital, economic stability, market size, and trade openness are the main determinants of FDI. FDI has a positive and significant effect on the Moroccan economy in both the short and long term.

Suggested Citation

  • Anass Arbia & Khalid Sobhi & Mohamed Karim, 2023. "Factors of FDI and their Impact on the Moroccan Economy: An Empirical Investigation Using the ARDL Approach," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 15(10), pages 1-32, October.
    • Handle: RePEc:ibn:ijefaa:v:15:y:2023:i:10:p:32
    as

    Download full text from publisher

    File URL: https://ccsenet.org/journal/index.php/ijef/article/download/0/0/49214/53096
    Download Restriction: no
    File URL: https://ccsenet.org/journal/index.php/ijef/article/view/0/49214
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Soltani Hassen & Ochi Anis, 2012. "Foreign Direct Investment (FDI) and Economic Growth: an approach in terms of cointegration for the case of Tunisia," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 2(4), pages 1-13.
    2. Osei, Michael J. & Kim, Jaebeom, 2020. "Foreign direct investment and economic growth: Is more financial development better?," Economic Modelling, Elsevier, vol. 93(C), pages 154-161.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Bo & Zhou, Peng, 2021. "Financial development and economic growth in a microfounded small open economy model," The North American Journal of Economics and Finance, Elsevier, vol. 58(C).
    2. Thanh Quang Phung & Ehsan Rasoulinezhad & Hang Luong Thi Thu, 2023. "How are FDI and green recovery related in Southeast Asian economies?," Economic Change and Restructuring, Springer, vol. 56(6), pages 3735-3755, December.
    3. Elliot Boateng & Mary Amponsah & Collins Annor Baah, 2017. "Complementarity Effect of Financial Development and FDI on Investment in Sub-Saharan Africa: A Panel Data Analysis," African Development Review, African Development Bank, vol. 29(2), pages 305-318, June.
    4. Shuibin Gu & Gigamon Joseph Prah, 2020. "The Effect of International Financial Reporting Standards on the Association between Foreign Direct Investment and Economic Growth: Evidence from Selected Countries in Africa," Journal of Accounting, Business and Finance Research, Scientific Publishing Institute, vol. 8(1), pages 21-29.
    5. Gulcin Guresci Pehlivan & Yagmur Saglam, 2016. "The Impact of Foreign Direct Investments on Economic Growth: The Case of MENA Region," Discussion Papers 2016/01, Yasar University, Department of Economics.
    6. Ma, Yong & Lv, Lin, 2023. "Financial development, financial instability, and fiscal policy volatility: International evidence," The North American Journal of Economics and Finance, Elsevier, vol. 64(C).
    7. Ismail Senturk & Fiaz Ahmad Sulehri & Syeda Mehak Ali, 2022. "Financial Development and Innovation Led-Growth: A Case of Selected Developing Countries," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(3), pages 81-97, September.
    8. repec:ipg:wpaper:2014-542 is not listed on IDEAS
    9. Hasanov, Fakhri J. & Aliyev, Ruslan & Taskin, Dilvin & Suleymanov, Elchin, 2023. "Oil rents and non-oil economic growth in CIS oil exporters. The role of financial development," Resources Policy, Elsevier, vol. 82(C).
    10. Osei, Michael J. & Kim, Jaebeom, 2023. "Financial development and the growth effect of foreign direct investment: Does one size fit all?," International Economics, Elsevier, vol. 173(C), pages 276-283.
    11. Fotio, Herve Kaffo & Nchofoung, Tii N. & Asongu, Simplice A., 2022. "Financing renewable energy generation in SSA: Does financial integration matter?," Renewable Energy, Elsevier, vol. 201(P2), pages 47-59.
    12. 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.
    13. Omri, Anis & Nguyen, Duc Khuong & Rault, Christophe, 2014. "Causal interactions between CO2 emissions, FDI, and economic growth: Evidence from dynamic simultaneous-equation models," Economic Modelling, Elsevier, vol. 42(C), pages 382-389.
    14. Nedra Baklouti & Younes Boujelbene, 2018. "The Nexus Between Democracy and Economic Growth: Evidence from Dynamic Simultaneous-Equations Models," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(3), pages 980-998, September.
    15. Gnangnon, Sèna Kimm, 2021. "Effect of the Utilization of Non-Reciprocal Trade Preferences offered by the QUAD on Economic Growth in Beneficiary Countries," EconStor Preprints 242848, ZBW - Leibniz Information Centre for Economics.
    16. Mohamed Abdouli & Sami Hammami, 2018. "The Dynamic Links Between Environmental Quality, Foreign Direct Investment, and Economic Growth in the Middle Eastern and North African Countries (MENA Region)," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(3), pages 833-853, September.
    17. Mohamed Abdouli & Sami Hammami, 2017. "The Impact of FDI Inflows and Environmental Quality on Economic Growth: an Empirical Study for the MENA Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(1), pages 254-278, March.
    18. Bilgehan Tekin, 2021. "Modeling the Relation of Financial Integration-Economic Growth with GMM and QR Methods," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 8, pages 32-47.
    19. Ammara Hussain & Ammar Oad & Munir Ahmad & Muhammad Irfan & Farhan Saqib, 2021. "Do Financial Development and Economic Openness Matter for Economic Progress in an Emerging Country? Seeking a Sustainable Development Path," JRFM, MDPI, vol. 14(6), pages 1-18, May.
    20. Anis Omri & Amel Sassi-Tmar, 2015. "Linking FDI Inflows to Economic Growth in North African Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 6(1), pages 90-104, March.
    21. Wu, Zihao & Gao, Jun & Xu, Hui & Shi, Guanqun & Zaidan, Amal Mousa & Ageli, Mohammed Moosa, 2023. "Visualizing symmetric and asymmetric settings in MMQR for natural resources extraction and economic performance: A COVID-19 perspective," Resources Policy, Elsevier, vol. 85(PB).

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    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:ibn:ijefaa:v:15:y:2023:i:10:p:32. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Canadian Center of Science and Education (email available below). General contact details of provider: https://edirc.repec.org/data/cepflch.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.