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Investigating the Nexus Between FDI and Institutional Quality: Evidence from Morocco

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  • Hamza Belfqih
  • Ahlam Qafas
  • Mounir Jerry

Abstract

This article investigates the relationship between institutional quality and foreign direct investment (FDI) in Morocco using a large set of institutional quality variables over the period 1970–2016. The study uses ARDL bounds testing approach with structural breaks and Granger causality. The analysis is then extended to the disaggregated sub-components to discern the inherent dynamics of institutional quality. The study finds several relationships between FDI and various aspects of institutional quality. Results from both models conclude with policy recommendations.

Suggested Citation

  • Hamza Belfqih & Ahlam Qafas & Mounir Jerry, 2022. "Investigating the Nexus Between FDI and Institutional Quality: Evidence from Morocco," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 14(3), pages 390-418, September.
    • Handle: RePEc:sae:emeeco:v:14:y:2022:i:3:p:390-418
    DOI: 10.1177/09749101211053069
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