Foreign Direct Investments, Market Size, Trade Openness & Natural Resources
Purpose: To assess the impact of policy, market size, trade openness & natural resources endowment on foreign direct investments in MENA countries. Methods: Meta-analysis has been incorporated that has combined data from multiple studies. It has systematically assessed the results of previously conducted researches for obtaining accurate results. The study has incorporated incomplete and unbalanced data from 17 MENA countries between the years 1960 and 2012.
The data was obtained from World Development Indicators, World Bank, and Energy Information Administration. Results: The results have identified that oil reserves have a negative influence on FDI inflows. Trade openness was positive and significant at 5%. Similarly, the impact of market size, measured as GDP constant, was also positive and significant at 10%. Conclusion: It has been evaluated that market size, trade openness, and natural resource have a positive impact on foreign direct investments among MENA countries. Originality Statement: The study is based on certain factors for assessing their impact on FDIs. Such originality has a closer relevance to assessing the market size, trade openness and natural resources among oil-producing countries.
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