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A Spatio -Temporal Analysis of FDI-Conflict Nexus in MENA Region

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  • Marouane Alaya

    (Sfax University)

Abstract

In this study we use a spatial methodology to explore the greenfield FDI in the aftermath of conflicts in the MENA region. Empirical results show that country risk is crucial for this type of FDI. In addition, we found that greenfield FDI and political stability in the MENA region benefit from a feedback loop effect. Furthermore, the spatial econometric regressions reveal the occurrence of spillovers (indirect effects) across the MENA countries. These spillovers do not only affect neighbors in close vicinity (neighbors of first order or contiguous neighbors), but also spread to neighbors of higher order, and might affect the whole region.

Suggested Citation

  • Marouane Alaya, 2024. "A Spatio -Temporal Analysis of FDI-Conflict Nexus in MENA Region," Working Papers 1746, Economic Research Forum, revised 20 Nov 2024.
    • Handle: RePEc:erg:wpaper:1746
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