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Institutional Reforms Debate and FDI Flows to MENA Region: Does One “Best” Fit All?

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  • Wasseem MIchel Mina

    (United Arab Emirates University)

Abstract

The paper revisits the policy debate on institutional reform approaches to property rights protection and empirically examines it in the context of FDI flows to the MENA region. Using panel data on 11 MENA countries for the period 1991-2007 and adopting FGLS methodology,the paper finds a positive influence of improvement in the risk of investment expropriationin non-GCC MENA countries and of bilateral investment treaties in GCC countries. The joint influence of domestic institutional functions and bilateral investment treaties is positive in specifications containing investment expropriation risk and government stability in non-GCC MENA countries, and corruption in GCC countries. Results have important policy implications for the institutional reform approach to be adopted.

Suggested Citation

  • Wasseem MIchel Mina, 2010. "Institutional Reforms Debate and FDI Flows to MENA Region: Does One “Best” Fit All?," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1034, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    • Handle: RePEc:ays:ispwps:paper1034
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    Cited by:

    1. Oscar Bajo-Rubio & Carmen D Mora, 2015. "On the employment effects of outward FDI: the case of Spain, 1995-2011," Applied Economics, Taylor & Francis Journals, vol. 47(21), pages 2127-2141, May.
    2. Mina, Wasseem & Jaeck, Louis, 2015. "Labor Market Flexibility and FDI Flows: Evidence from Oil-Rich GCC and Middle Income Countries," MPRA Paper 62652, University Library of Munich, Germany.
    3. Elsamadisy, Elsayed Mousa & Alkhater, Khalid Rashid & Basher, Syed Abul, 2014. "Pre- versus post-crisis central banking in Qatar," Journal of Policy Modeling, Elsevier, vol. 36(2), pages 330-352.
    4. Wasseem Mina, 2014. "United Arab Emirates FDI Outlook," The World Economy, Wiley Blackwell, vol. 37(12), pages 1716-1730, December.
    5. Mina, Wasseem, 2012. "Beyond FDI: The Influence of Bilateral Investment Treaties on Debt," MPRA Paper 51920, University Library of Munich, Germany.
    6. Mina, Wasseem Michel, 2012. "The Institutional Reforms Debate and FDI Flows to the MENA Region: The “Best” Ensemble," World Development, Elsevier, vol. 40(9), pages 1798-1809.
    7. Wasseem Mina, 2018. "Labor Market Policies and FDI Flows to GCC Countries," Working Papers 1201, Economic Research Forum, revised 27 May 2018.

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