معارف
Volume 14, Numéro 1, Pages 448-462
2019-06-01

Empirical Study On The Impact Of Country Risk On Fdi In Mena Region

Authors : Hammache Souria . Boubakeur Mustapha .

Abstract

This article tries to examines the impact of country risk on FDI in MENA region by applying a Panel Data Analysis, during the period 2000 -2014. The Middle East and North Africa region has experienced a decline in foreign direct investment in recent years due mainly to the deterioration of the environment, and the increasing political risks and instability of the governments in place. The results suggest that political risk is not significant this result could be explaind by the fact that foreign investors tend to accept that, risk is an inherent factor of the region. Foreign investors accept a certain degree of risk, adapt and take the necessary measures, as the profitability remains high. The institutional variables in the MENA appear to be more influential on FDI than political risk.

Keywords

Keys words : country risk, FDI, MENA