Trade Openness, Foreign Direct Investment, and Human Development: A Panel Cointegration Analysis for MENA Countries

2021 ◽  
pp. 1-20
Author(s):  
Helmi Hamdi ◽  
Abdelaziz Hakimi
Keyword(s):  
Foreign Direct Investment ◽  
Human Development ◽  
Direct Investment ◽  
Trade Openness ◽  
Panel Cointegration ◽  
Cointegration Analysis ◽  
Mena Countries

An Analysis of The Relation Between Foreign Direct Investment and Sociopolitical Variables in MENA Countries by Panel Regression

2019 ◽  
Vol 8 (1) ◽  
pp. 15-30
Author(s):  
Betül Gür
Keyword(s):  
Foreign Direct Investment ◽  
Human Development ◽  
Human Development Index ◽  
Direct Investment ◽  
Multidimensional Poverty ◽  
Panel Regression ◽  
Poverty Index ◽  
Development Index ◽  
Mena Countries ◽  
Multidimensional Poverty Index

Foreign direct investment (FDI) plays the role of an accelerator for the economic growth in host countries. Countries that provide the suitable environment economically and politically get ahead in this race. Over the last five years, the weighted importance of sociopolitical variables in the decision-making process has increased. The countries of the Middle East and North Africa (MENA) region, although they have a potential to develop, are regarded as country groups that have not yet fully achieved this. This article reveals and interprets the relationship between FDI and sociopolitical variables such as political risk, human development index, terrorism risk index, multidimensional poverty index, the rule of law, regulatory quality, and control of corruption, utilizing panel regression analysis. In the analysis of the MENA countries covering the years 2010-2016, it was concluded that all independent variables except the human development index and multidimensional poverty index were statistically significant and effective on FDI.

scholarly journals The Effect of Foreign Direct Investment and Foreign Trade on Gross Domestic Product in Eurasian Countries: Panel Cointegration Analysis

2013 ◽  
Author(s):  
Mehmet Songur ◽  
Demet Yaman
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Foreign Trade ◽  
Direct Investment ◽  
Negative Impact ◽  
Positive Impact ◽  
Panel Cointegration ◽  
Research Area ◽  
Cointegration Analysis ◽  
Annual Data

In recent years, with the phenomenon of globalization, both foreign trade and foreign direct investment have become important factors that impact on economic growth. The effect of foreign trade and foreign direct investment on economic growth has been an important research area for many economists. For this purpose, this study investigates the effects of foreign direct invesment and foreign trade on economic growth, with the help of Pedroni Panel Cointegration Analysis,for 9 Eurasian countries using annual data for the period 1995-2011.The results show that in analyzed countries, there has been a long-term relationship between the variables. The results of cointegration coeffficients show that, import and export has a negative impact but foreign direct invesment has a positive impact on GDP. From these results, Eurasian economies on one hand should develop policies to increase the effeciency of foreign direct invesment and increase foreign trade. On the other hand Eurasian economies should improve policies to increase the economic and human infrastructure.

scholarly journals Causal Links between Trade Openness and Foreign Direct Investment in Romania

2021 ◽  
Vol 14 (3) ◽  
pp. 90
Author(s):  
Malsha Mayoshi Rathnayaka Mudiyanselage ◽  
Gheorghe Epuran ◽  
Bianca Tescașiu
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Trade Openness ◽  
Test Procedure ◽  
Real Effective Exchange Rate ◽  
Foreign Direct Investments ◽  
Causality Test ◽  
Fdi Inflows ◽  
Distributed Lag ◽  
Long Run

In this increasingly globalized era, foreign direct investments are considered to be one of the most important sources of external financing for all countries. This paper investigates the causal relationship between trade openness and foreign direct investment (FDI) inflows in Romania during the period 1997–2019. Throughout this study, Trade Openness is the main independent variable, and Gross Domestic Product (GDP), Real Effective Exchange Rate (EXR), Inflation (INF), and Education (EDU) act as control variables for investigating the relationships between trade openness (TOP) and FDI inflow in Romania. The Auto Regressive Distributed Lag (ARDL) Bounds test procedure was adopted to achieve the above-mentioned objective. Trade openness has negative and statistically significant long-run and short-run relationships with FDI inflows in Romania throughout the period. Trade openness negatively affects the FDI inflow, which suggest that the higher the level of openness is, the less likely it is that FDI will be attracted in the long run. The result of the Granger causality test indicated that Romania has a unidirectional relationship between trade openness and FDI. It also showed that the direction of causality ran from FDI to trade openness.

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