Foreign direct investment and economic growth in Arab countries: do institutions, financial development and human capital matter?-Reference-Cited by-同舟云学术

Foreign direct investment and economic growth in Arab countries: do institutions, financial development and human capital matter?

Published:2024-07-09 Issue: Volume: Page:
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Author:

Ochi Anis¹^ORCID,Haous Amine²^ORCID,Saidi Anis¹^ORCID

Affiliation:

1. Université de Jendouba, Faculté des Sciences Juridiques, Economiques et de Gestion de Jendouba, LR: Valorisation du Patrimoine Naturel et Culturel, 8189, Jendouba, Tunisie.

2. Université Ibn-Khaldoun Tiaret, Faculté des Sciences économiques, Commerciales et de Gestion. BP P 78 zaâroura 14000, Tiaret, Algérie.

Abstract

This study examines the effect of foreign direct investment (FDI) on economic growth, with emphasis on the role of institutional quality, human capital and financial development for Arab countries over the period 2002-2019. We found that the nexus between FDI and growth is nonlinear. By using a dynamic panel threshold model, the results show that there is a statistically positive relationship between FDI and growth above thresholds of 1.8 for human capital, -0.44 for institutional quality and 0.29 for financial development, above which FDI increases economic growth in Arab countries. Based on the results, this research proposes several policy recommendations. JEL Classification numbers : F21, F43, G34, J24, C24

Publisher

Springer Science and Business Media LLC

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