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Les pays de l’Afrique du Nord et les IDE face à la problématique de l’attractivité
[North African countries and FDI facing the issue of attractiveness]

Author

Listed:
  • Menna, Khaled
  • Mehibel, Samer

Abstract

According to the latest UNCTAD report on foreign direct investment (Unctad, 2017) Global FDI flows are expected to reach nearly $ 1.8 trillion in 2017, then $ 1.85 trillion in 2018 - still well below the record of 2007. North Africa received $ 14.5 billion as inward FDI flows, accounting for 3.4% of global flows. This rate was 3.5% in 2014 and 5.4% in 2013. The growth despite the decline in the share growth of about 11%. This increase is mainly due to the reforms introduced to FDI regulations and new gas discoveries in Egypt. Empirical works on FDI suggest many explanatory variables of attractiveness, but ultimately, no consensus emerges1. It is about several industrial factors (transport costs, implementation costs, salary costs, technological advantages, activity agglomerations … etc.), commercial (market size, proximity to demand, barriers to trade, membership in an integration zone) than institutional (tax or commercial policy, legislative provisions on capital repatriation or capital movement, country risk, business climate) (Alaya and al, 2009). This work looks at the comparison of North African countries with other countries. Ten countries were chosen, chosen because they have common problematics, and spread throughout the world. Then, based on the work of Unctad2, an " attractiveness contextualized index" is built, simple but robust, which makes it possible to locate, for each country of the sample, the aspects on which it is strong or weak. The comparison between the countries of North Africa can lead to economic policy proposals regarding FDI. The results show that the countries of North Africa had similar results except Tunisia, which ranked sixth among the countries in the sample. The other countries, Morocco, Egypt and Algeria obtained positions 7, 8 and 10 respectively. These results confirm the results obtained in terms of FDI inward flows. The attractiveness policies already practiced have shown their limits. A renewal of these policies based on research and development could turn the tables and highlight the assets available to the countries of North Africa.

Suggested Citation

  • Menna, Khaled & Mehibel, Samer, 2018. "Les pays de l’Afrique du Nord et les IDE face à la problématique de l’attractivité
    [North African countries and FDI facing the issue of attractiveness]
    ," MPRA Paper 85559, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:85559
    as

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    File URL: https://mpra.ub.uni-muenchen.de/85559/1/MPRA_paper_85559.pdf
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    References listed on IDEAS

    as
    1. Franklin R Root & Ahmed A Ahmed, 1978. "The influence of policy instruments on manufacturing Direct Foreign investment in developing countries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 9(3), pages 81-94, September.
    2. Sandrine Levasseur, 2002. "Investissements directs à l'étranger et stratégies des entreprises multinationales," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(5), pages 103-152.
    3. Belloumi, Mounir, 2014. "The relationship between trade, FDI and economic growth in Tunisia: An application of the autoregressive distributed lag model," Economic Systems, Elsevier, vol. 38(2), pages 269-287.
    4. Jan Johanson & Jan-Erik Vahlne, 2009. "The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(9), pages 1411-1431, December.
    5. Hubert, Florence & Pain, Nigel, 2002. "Fiscal Incentives, European Integration and the Location of Foreign Direct Investment," Manchester School, University of Manchester, vol. 70(3), pages 336-363, June.
    6. Agnès Bénassy‐Quéré & Maylis Coupet & Thierry Mayer, 2007. "Institutional Determinants of Foreign Direct Investment," The World Economy, Wiley Blackwell, vol. 30(5), pages 764-782, May.
    7. Deardorff, Alan V., 2001. "Fragmentation in simple trade models," The North American Journal of Economics and Finance, Elsevier, vol. 12(2), pages 121-137, July.
    8. Gorodnichenko, Yuriy & Svejnar, Jan & Terrell, Katherine, 2014. "When does FDI have positive spillovers? Evidence from 17 transition market economies," Journal of Comparative Economics, Elsevier, vol. 42(4), pages 954-969.
    9. Caves, Richard E, 1971. "International Corporations: The Industrial Economics of Foreign Investment," Economica, London School of Economics and Political Science, vol. 38(149), pages 1-27, February.
    10. Claire MAINGUY, 2004. "L'Impact Des Investissements Directs Étrangers Sur Les Économies En Développement," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 20, pages 65-89.
    11. Demir, Firat, 2016. "Effects of FDI Flows on Institutional Development: Does It Matter Where the Investors are from?," World Development, Elsevier, vol. 78(C), pages 341-359.
    12. Chenaf-Nicet, Dalila & Rougier, Eric, 2016. "The effect of macroeconomic instability on FDI flows: A gravity estimation of the impact of regional integration in the case of Euro-Mediterranean agreements," International Economics, Elsevier, vol. 145(C), pages 66-91.
    13. Jan Johanson & Jan-Erik Vahlne, 1977. "The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 8(1), pages 23-32, March.
    14. John Dunning, 1981. "Explaining the international direct investment position of countries: Towards a dynamic or developmental approach," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 117(1), pages 30-64, March.
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    17. repec:bis:bisqtr:0212e is not listed on IDEAS
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    More about this item

    Keywords

    FDI; Algeria; Attractiveness;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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