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Institutional quality and FDI inflows in Arab economies

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  • Aziz, Omar Ghazy

Abstract

This study empirically examines the impact of institutional quality on FDI inflows in the Arab region. The analysis is performed by employing system GMM estimation in panel data comprising 16 Arab countries over the period 1984–2012. The study finds that the institutional quality variables of economic freedom, ease of doing business and international country risk (ICRG) have a positive and significant impact on FDI inflows in Arab economies. The results of this study have several implications for policy makers.

Suggested Citation

  • Aziz, Omar Ghazy, 2018. "Institutional quality and FDI inflows in Arab economies," Finance Research Letters, Elsevier, vol. 25(C), pages 111-123.
    • Handle: RePEc:eee:finlet:v:25:y:2018:i:c:p:111-123
    DOI: 10.1016/j.frl.2017.10.026
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    More about this item

    Keywords

    FDI inflows; Doing business; Economic freedom; ICRG; Arab economies;
    All these keywords.

    JEL classification:

    • F30 - International Economics - - International Finance - - - General

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