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The determinants of foreign direct investment in MENA countries: an extreme bounds analysis

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  • Imad Moosa

Abstract

The determinants of foreign direct investment inflows are examined by applying extreme bounds analysis to a cross-sectional sample encompassing data on 18 Middle Eastern and North African countries. With the gross domestic product growth rate serving as the free variable, eight potential explanatory variables are tried as the variables of interest in combination with three other variables. The results reveal that only one variable is robust when traditional EBA is used. However, when restricted EBA is used, the results based on the 60% of the regressions with the highest R2 reveal three more robust variables. Some explanations for the results are put forward.

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  • Imad Moosa, 2009. "The determinants of foreign direct investment in MENA countries: an extreme bounds analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 16(15), pages 1559-1563.
    • Handle: RePEc:taf:apeclt:v:16:y:2009:i:15:p:1559-1563
    DOI: 10.1080/13504850701578819
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    13. Nam, Hyun-Jung & Ryu, Doojin, 2023. "FDI and human development: The role of governance, ODA, and national competitiveness," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 85(C).
    14. Nam, Hyun-Jung & Bang, Jeongseok & Ryu, Doojin, 2023. "Do financial and governmental institutions play a mediating role in the spillover effects of FDI?," Journal of Multinational Financial Management, Elsevier, vol. 69(C).
    15. Brahim Elmorchid & Nouira Ridha & Khalid Sekka, 2013. "A Comparative Analysis of the Determinants of Foreign Direct Investment in The Arab World and in Asia," Working Papers 811, Economic Research Forum, revised Dec 2013.
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    17. Fosu, Prince, 2016. "Infrastructure and Foreign Direct Investment Inflows: Evidence from Ghana," MPRA Paper 100375, University Library of Munich, Germany, revised 13 May 2020.

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