The Impact of the Quality of Governance on Foreign Direct Investment and Economic Growth: A case study of MENA countries

Hassen Soltani, Mohamed Ghandri

Abstract


Using the dynamic method of moments generalized (GMM) from a sample of 15 Middle East and North Africa (MENA) countries during the period 2000-2017, the researcher conducted this paper in an attempt to examine the impact of governance quality on foreign direct investments (FDI) and economic growth in these countries. The results show that, in general, governance variables are positively correlated with economic growth. This is due to the fact that the quality of the institutional infrastructure is very important for the attractiveness of FDI and the promotion of a country's growth. Similarly, FDI is significantly and positively related to economic growth.


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ISSN : 2251-1555