The determinants of foreign direct investments in the Middle East and North Africa region -

Abstract

FDIs are considered to be a major aspect of globalization especially during the last three decades. Barriers to foreign investment have fallen gradually since the 1980s. Nevertheless, FDI inflows to the MENA region have been disappointing relative to other developing countries despite its 430 million population, being home of the richest oil-producing countries in the world, and two decades of implementation of structural adjustment. Countries of the MENA region are very diverse in their economic, political and social features. On the basis of these elements, the performance of a country, with respect to attracting FDI, varies across the MENA region. Therefore , further investigation of the determinants of FDI and how do they shape the distribution of FDIs among MENA countries especially in the light of the recent political events shaking the Middle East is required. This project aims to examine the role of the FDI determinants in the distribution of the FDIs in the MENA region. It will be divided into five chapters: Chapter 1 is a general introduction. Chapter 2 is a literature review that includes what previous researchers conclude about the impact of FDI determinants on the MENA countries. Chapter 3 covers the macroeconomic fundamentals of the MENA region. Chapter 4 includes empirical testing in a panel approach using E-views. Chapter 5 concludes and gives policy recommendations.