مجلة الإقتصاد الجديد
Volume 11, Numéro 4, Pages 23-42
2020-07-15

Trade Openness And Foreign Direct Investment: A Panel Analysis Of North African Countries

Authors : Moukil Sara Samira . Omar Belkhir Djaoued .

Abstract

The purpose of this study is to analyze whether trade openness is an important determinant of foreign direct investment (FDI) inflows in North Africa. A panel data sample of four North African countries (Algeria, Egypt, Morocco, and Tunisia) was used over the period 1990-2018. The dynamic panel data method was employed by using the Pooled Mean Group (PMG) technique. The results show that, in the long-term, trade openness has a significant positive impact on FDI inflows in the selected North African countries.

Keywords

Trade openness ; Foreign direct investment ; North Africa ; Panel analysis