IDEAS home Printed from https://ideas.repec.org/a/eme/ijsepp/v38y2011i9p802-815.html
   My bibliography  Save this article

The effects of FDI on voice and accountability in the MENA region

Author

Listed:
  • Hassan Gholipour Fereidouni
  • Tajul Ariffin Masron
  • Reza Ekhtiari Amiri

Abstract

Purpose - Several scholars, policymakers and international development agencies have been suggesting that trade and capital openness would bring better governance, in particular higher level of voice and accountability (VA), for the Middle East and North Africa (MENA) region. The purpose of this paper is to examine the effects of foreign direct investment (FDI) inflows on VA in the MENA region. Design/methodology/approach - Applying two different panel models (fixed‐effects and dynamic), this paper uses related observations from 19 MENA countries between 2000 and 2008 to analyze the impacts of FDI inflows on VA. Findings - The results reveal that FDI inflows do not contribute to the higher level of VA in the MENA region. Originality/value - With no previous studies of the linkage between FDI inflows and VA in the MENA region, the paper makes a significant contribution in this regard.

Suggested Citation

  • Hassan Gholipour Fereidouni & Tajul Ariffin Masron & Reza Ekhtiari Amiri, 2011. "The effects of FDI on voice and accountability in the MENA region," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 38(9), pages 802-815, August.
  • Handle: RePEc:eme:ijsepp:v:38:y:2011:i:9:p:802-815
    DOI: 10.1108/03068291111157258
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/03068291111157258/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://www.emerald.com/insight/content/doi/10.1108/03068291111157258/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://libkey.io/10.1108/03068291111157258?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Magda Kandil, 2009. "Determinants of institutional quality and their impact on economic growth in the MENA region," International Journal of Development Issues, Emerald Group Publishing Limited, vol. 8(2), pages 134-167, October.
    2. Barry Eichengreen & David Leblang, 2008. "Democracy And Globalization," Economics and Politics, Wiley Blackwell, vol. 20(3), pages 289-334, November.
    3. Kevin K. Tsui, 2011. "More Oil, Less Democracy: Evidence from Worldwide Crude Oil Discoveries," Economic Journal, Royal Economic Society, vol. 121(551), pages 89-115, March.
    4. Busse, Matthias & Hefeker, Carsten, 2007. "Political risk, institutions and foreign direct investment," European Journal of Political Economy, Elsevier, vol. 23(2), pages 397-415, June.
    5. Acemoglu,Daron & Robinson,James A., 2009. "Economic Origins of Dictatorship and Democracy," Cambridge Books, Cambridge University Press, number 9780521671422, October.
    6. Djankov, Simeon & McLiesh, Caralee & Nenova, Tatiana & Shleifer, Andrei, 2003. "Who Owns the Media?," Journal of Law and Economics, University of Chicago Press, vol. 46(2), pages 341-381, October.
    7. Shahnawaz Sheikh & Nugent Jeffery B, 2004. "Is Natural Resource Wealth Compatible with Good Governance?," Review of Middle East Economics and Finance, De Gruyter, vol. 2(3), pages 1-33, December.
    8. Dollar, David & Kraay, Aart, 2003. "Institutions, trade, and growth," Journal of Monetary Economics, Elsevier, vol. 50(1), pages 133-162, January.
    9. Almounsor Abdullah, 2008. "Capital Flight Accounting and Welfare Implications in the MENA Region," Review of Middle East Economics and Finance, De Gruyter, vol. 4(2), pages 1-67, April.
    10. Klapper, Leora & Delgado, Juan Manuel Quesada, 2009. "The impact of the business environment on the business creation process," Policy Research Working Paper Series 4937, The World Bank.
    11. S. Guriev & G. Egorov & K. Sonin, 2007. "Media Freedom, Bureaucratic Incentives, and the Resource Curse," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 4.
    12. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    13. Michael L. Nieswiadomy & Mark C. Strazicich, 2004. "Are Political Freedoms Converging?," Economic Inquiry, Western Economic Association International, vol. 42(2), pages 323-340, April.
    14. Lipset, Seymour Martin, 1959. "Some Social Requisites of Democracy: Economic Development and Political Legitimacy1," American Political Science Review, Cambridge University Press, vol. 53(1), pages 69-105, March.
    15. Nabamita Dutta & Sanjukta Roy, 2009. "The Impact of Foreign Direct Investment on Press Freedom," Kyklos, Wiley Blackwell, vol. 62(2), pages 239-257, April.
    16. Looney Robert E, 2005. "Why Has the Middle East Been so Slow to Globalize?," Review of Middle East Economics and Finance, De Gruyter, vol. 3(3), pages 2-31, December.
    17. Chung-Chu Chuang & Yi-Hsien Wang, 2009. "Developed stock market reaction to political change: a panel data analysis," Quality & Quantity: International Journal of Methodology, Springer, vol. 43(6), pages 941-949, November.
    18. Li, Quan & Reuveny, Rafael, 2003. "Economic Globalization and Democracy: An Empirical Analysis," British Journal of Political Science, Cambridge University Press, vol. 33(1), pages 29-54, January.
    19. S. Guriev & G. Egorov & K. Sonin., 2007. "Media Freedom, Bureaucratic Incentives, and the Resource Curse," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 4.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cosmas S. Mbogela, 2019. "An Empirical study on the determinants of trade openness in the African economies," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 9(3), pages 1-2.
    2. Hussain Ali Bekhet & Raed Walid Al-Smadi, 2016. "The dynamic causality between FDI inflow and its determinants in Jordan," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 11(1), pages 26-47.
    3. Bekhet, Hussain Ali & Al-Smadi, Raed Walid, 2015. "Determinants of Jordanian foreign direct investment inflows: Bounds testing approach," Economic Modelling, Elsevier, vol. 46(C), pages 27-35.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Baris Kablamaci, 2019. "Does economic openness affect liberal and electoral democracy in a different way? Empirical evidence from developing countries," Scottish Journal of Political Economy, Scottish Economic Society, vol. 66(3), pages 404-433, July.
    2. Rougier, Eric, 2016. "“Fire in Cairo”: Authoritarian–Redistributive Social Contracts, Structural Change, and the Arab Spring," World Development, Elsevier, vol. 78(C), pages 148-171.
    3. Doris A. Oberdabernig & Stefan Humer & Jesus Crespo Cuaresma, 2018. "Democracy, Geography and Model Uncertainty," Scottish Journal of Political Economy, Scottish Economic Society, vol. 65(2), pages 154-185, May.
    4. Martin Gassebner & Michael J. Lamla & James Raymond Vreeland, 2013. "Extreme Bounds of Democracy," Journal of Conflict Resolution, Peace Science Society (International), vol. 57(2), pages 171-197, April.
    5. Mishra, Sudhanshu K, 2018. "A Simultaneous Equation Model of Globalization, Corruption, Democracy, Human Development and Social Progress," MPRA Paper 84213, University Library of Munich, Germany.
    6. Cong Minh Huynh & Vu Hong Thai Nguyen & Hoang Bao Nguyen & Phuc Canh Nguyen, 2020. "One-way effect or multiple-way causality: foreign direct investment, institutional quality and shadow economy?," International Economics and Economic Policy, Springer, vol. 17(1), pages 219-239, February.
    7. Bougharriou, Nouha & Benayed, Walid & Gabsi, Foued Badr, 2019. "The democracy and economic growth nexus: Do FDI and government spending matter? Evidence from the Arab world," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 13, pages 1-29.
    8. Krenz, Astrid, 2016. "Do political institutions influence international trade? Measurement of institutions and the Long-Run effects," University of Göttingen Working Papers in Economics 276, University of Goettingen, Department of Economics.
    9. Sudhanshu K. Mishra, 2018. "A Study on Regime Type and Globalization in Simultaneous Equation Framework," Journal of Economics and Financial Analysis, Tripal Publishing House, vol. 2(1), pages 99-128.
    10. Șancariuc Delia-Raluca & Preda Dragoș Cosmin Lucian, 2024. "Does Trade Openness Influence Democracy? Evidence from Ex-communist Countries," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 18(1), pages 1996-2004.
    11. Markus Brückner & Antonio Ciccone & Andrea Tesei, 2012. "Oil Price Shocks, Income, and Democracy," The Review of Economics and Statistics, MIT Press, vol. 94(2), pages 389-399, May.
    12. Mulligan, Casey B. & Tsui, Kevin K., 2015. "Political entry, public policies, and the economy," Research in Economics, Elsevier, vol. 69(3), pages 377-397.
    13. Nabamita Dutta & Sanjukta Roy, 2009. "The Impact of Foreign Direct Investment on Press Freedom," Kyklos, Wiley Blackwell, vol. 62(2), pages 239-257, April.
    14. Houda Haffoudhi & Rihab Bellakhal, 2020. "Threshold Effect of Globalization on Democracy: the Role of Demography," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(4), pages 1690-1707, December.
    15. Asiedu, Elizabeth & Lien, Donald, 2011. "Democracy, foreign direct investment and natural resources," Journal of International Economics, Elsevier, vol. 84(1), pages 99-111, May.
    16. repec:gig:joupla:v:2:y:2010:i:3:p:129-142 is not listed on IDEAS
    17. Sajad Rahimian, 2021. "The Determinants of Democracy Revisited: An Instrumental Variable Bayesian Model Averaging Approach," Papers 2103.04255, arXiv.org.
    18. Hartwell, Christopher A., 2014. "The impact of institutional volatility on financial volatility in transition economies : a GARCH family approach," BOFIT Discussion Papers 6/2014, Bank of Finland, Institute for Economies in Transition.
    19. Markus Brückner & Antonio Ciccone, 2011. "Rain and the Democratic Window of Opportunity," Econometrica, Econometric Society, vol. 79(3), pages 923-947, May.
    20. Dahlum, Sirianne & Knutsen, Carl Henrik, 2017. "Do Democracies Provide Better Education? Revisiting the Democracy–Human Capital Link," World Development, Elsevier, vol. 94(C), pages 186-199.
    21. Barry Eichengreen & David Leblang, 2008. "Democracy And Globalization," Economics and Politics, Wiley Blackwell, vol. 20(3), pages 289-334, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:ijsepp:v:38:y:2011:i:9:p:802-815. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.