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

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  • 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
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    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.

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