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Is There Anything Special With Intra-Arab Capital Flows?

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  • Khalid Sekkat

    (University of Brussels)

Abstract

The paper examines the determinants if intra-Arab FDI inflows as compared to inflows from non-Arab countries. To this end, the analysis is conducted on two samples separately: one concerns intra-Arab FDI while the other focuses on FDI flows to Arabs from non-Arab countries. The results show a difference in the determinants of FDI inflows to Arab countries depending on the suppliers (Arab or non-Arab) and that Arabs are investing more than they should in other Arab-countries. However, the more striking result of the analysis is the difference in the determinants of Arab FDI inflows according to the supplier. Such a difference suggests that human capital, quality of institutions, infrastructure and openness don’t affect an Arab investor’s decision to locate in a given Arab country while they affect non-Arab investors. Hence, for an Arab country to attract more Arab FDI it doesn’t need necessarily to comply with the literature and international organization’s recommendations regarding openness and institutions.

Suggested Citation

  • Khalid Sekkat, 2013. "Is There Anything Special With Intra-Arab Capital Flows?," Working Papers 812, Economic Research Forum, revised Dec 2013.
    • Handle: RePEc:erg:wpaper:812
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    References listed on IDEAS

    as
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    6. Ben Hammouda, Hakim & Oulmane, Nassim & Bchir, Hédi & Sadni Jallab, Mustapha, 2006. "The Cost of non-Maghreb: Achieving the Gains from Economic Integration," MPRA Paper 13293, University Library of Munich, Germany.
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