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Linking FDI inflows to economic growth in North African countries

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  • Omri, Anis
  • Sassi-Tmar, Amel

Abstract

This paper tries to examine the interrelationship between FDI inflows and the economic growth for three African economies, namely, Tunisia, Morocco, and Egypt during 1985–2011. Our analysis, which is based on a simultaneous equations model, reveals that in overall terms a mutually promoting two-way linkage between FDI and economic growth exists in these countries. Using the generalized method of moments (GMM), we find that the two-way linkage between FDI inflows and economic growth has been verified in all three economies , i.e., high level of foreign direct investment inflows had accelerated economic growth and high economic growth in these economies does send positive signals to prospective foreign investors.

Suggested Citation

  • Omri, Anis & Sassi-Tmar, Amel, 2015. "Linking FDI inflows to economic growth in North African countries," MPRA Paper 82611, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:82611
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    More about this item

    Keywords

    Economic growth; FDI inflows; GMM-estimator; North African countries.;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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