IDEAS home Printed from https://ideas.repec.org/p/oec/devaaa/128-en.html
   My bibliography  Save this paper

The Case of Missing Foreign Investment in the Southern Mediterranean

Author

Listed:
  • Peter A. Petri

Abstract

The developing countries of the Southern Mediterranean (SOM) have missed the extraordinary surge of private international investment in recent years. Although the SOM region was an important destination for foreign direct investments, its share of world FDI has declined. In 1994, private capital represented only 37 per cent of the SOM’s capital inflows (of which nearly all went to Egypt and Morocco) compared to 76 per cent for all developing countries.There is great potential for expanding foreign investment in the region. Comparative econometric exercises in the study also suggest large gaps between actual inflows into SOM and into similar economies elsewhere. Moreover, the region’s history of emigration and capital flight have created a pool of resources that could quickly respond to opportunities.This paper identifies a cluster of policy initiatives that could help increase private capital inflows:domestic measures — including privatisation, trade liberalisation, and currency ... Les pays en développement du Bassin sud-méditerranéen n’ont pas profité de l’expansion remarquable des investissements privés internationaux de ces dernières années. Bien que la région ait été précédemment une destination privilégiée pour les investissements directs étrangers, sa part dans les IDE mondiaux a décliné. Ainsi, en 1994, les capitaux privés représentaient 37 pour cent seulement des entrées de capitaux dans la région (et ils se sont concentrés essentiellement sur l’Égypte et le Maroc), alors qu’ils atteignent 76 pour cent pour l’ensemble des pays en développement.Il existe donc un vaste potentiel pour le développement de l’investissement étranger dans la région. Les comparaisons économétriques effectuées dans l’étude montrent également l’importance des différences entre les entrées actuelles de capitaux dans la région sud-méditerranéenne et dans d’autres économies comparables. L’émigration et les fuites de capitaux qui ont caractérisé la région par le passé ont créé une ...

Suggested Citation

  • Peter A. Petri, 1997. "The Case of Missing Foreign Investment in the Southern Mediterranean," OECD Development Centre Working Papers 128, OECD Publishing.
  • Handle: RePEc:oec:devaaa:128-en
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1787/883370106308
    Download Restriction: no

    Citations

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


    Cited by:

    1. Heather D. Gibson & Thomas Vlassopoulo, 2007. "Capital Folws, capital account liberalisation and the southern Mediterranean countries," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 60(241), pages 137-165.
    2. Dalila NICET- CHENAF (GREThA-GRES) & Eric ROUGIER (GREThA-GRES), 2008. "Recent exports matter: export discoveries, FDI and Growth, an empirical assessment for MENA countries," Cahiers du GRES (2002-2009) 2008-17, Groupement de Recherches Economiques et Sociales.
    3. Thierry Mayer, 2006. "Policy Coherence for Development : A Background paper on Foreign Direct Investment," Sciences Po publications 253, Sciences Po.
    4. Alaya MAROUANE (Université of Tunis) & Dalila NICET-CHENAF (GREThA UMR CNRS 5113) & Eric ROUGIER (GREThA UMR CNRS 5113), 2008. "The law of growth and attraction: an endogenous model of absorptive capacities, FDI and income for MENA countries," Cahiers du GREThA 2008-27, Groupe de Recherche en Economie Théorique et Appliquée.
    5. Amina Lahrèche-Revil, 1999. "Taux de change réel et croissance : Perspectives pour une zone euro en Méditerranée," Revue d'Économie Financière, Programme National Persée, vol. 52(2), pages 117-132.
    6. Iván Martín, 2004. "La inversión extranjera directa en los países del Maghreb en el marco de la Asociación Euromediterránea: ¿el eslabón perdido?," International Trade 0405001, University Library of Munich, Germany.
    7. Heather D. Gibson & Nicholas T. Tsaveas & Thomas Vlassopoulos, 2006. "Capital Flows, Capital Account Liberalisation and the Mediterranean Countries," Working Papers 33, Bank of Greece.
    8. Dalila NICET-CHENAF (GREThA UMR CNRS 5113) & Eric ROUGIER (GREThA UMR CNRS 5113), 2009. "FDI and growth: A new look at a still puzzling issue," Cahiers du GREThA 2009-13, Groupe de Recherche en Economie Théorique et Appliquée.

    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:oec:devaaa:128-en. 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: (). General contact details of provider: http://edirc.repec.org/data/dcoecfr.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.