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- Title
Does Inward FDI Promote Exports and GDP: Dynamic Panel Evidence from Selected MENA Countries.
- Authors
Sabra, Mahmoud M.
- Abstract
FDI, GDP and exports are highly related in the economic theory. We aim to investigate the impact of inward Foreign Direct Investment FDI on both exports and national output, i.e. whether inward FDI led-exports and ledoutput growth or not, in seven middle income MENA countries, which are (Algeria, Egypt, Jordan, Lebanon, Morocco, Palestine, and Tunisia), for the period from 2000 to 2019, using four equations and two different econometric techniques, which are simultaneous equations and Dynamic Panel Data estimators. We found a positive limited FDI impact on both GDP and exports. Positive association with exports indicates complex type of FDI, which services the local market and re-export to home or third country, in the area. This indicates an important result that complex vertical, Knowledge Capital model and platform exports "third country effect" types may stand, and FDI complement exports in the area and during the mentioned period. Several limitations were captured that face attracting FDI and increasing its impact on exports and GDP have been concluded. We recommended of an ambitious series of public, financial, institutional and budget reforms, and structural policies that may enhance FDI role to boost GDP and exports.
- Publication
Journal of Applied Economics & Business Research, 2021, Vol 11, Issue 1, p12
- ISSN
1927-033X
- Publication type
Academic Journal