مجلة النمو الاقتصادي والمقاولاتية
Volume 6, Numéro 2, Pages 9-15
2023-05-27

The Impact Of Trade Openness On Fdi Inflows Amid Structural Economic Vulnerability In Three Least Developed Countries (djibouti, Haiti And Tanzania)during The Period 2004 -2018 Using Panel Ardl Model

Authors : Djelti Larbi . Chemma Nawal .

Abstract

This study aims to investigate the effect of trade openness on FDI inflows amid structural economic vulnerability for three least developed countries (Djibouti, Haiti and Tanzania) during the period 2004 -2018 using panel ARDL model. The results of our study reveal that FDI inflows react negatively to the structural economic vulnerability index (EVI), in which a 1% increase for EVI will decrease FDI inflows by 0.00937%. The political stability indicator (POLST) has a positive effect on FDI inflows, in which a 1% increase for POLST will increase FDI with 0.003047%. While, trade openness (TO) hasn’t any palpable effect on FDI inflows due to the existence of high levels of EVI, which in turn is deemed as a stumbling block to FDI growth.

Keywords

trade openness ; foreign direct investment ; structural economic vulnerability ; panel ARDL model ; least developed countries