FDI and exports diversification in Arab countries

الملخص EN

The diversity of MENA countries’ exports has increased together with flows of FDI to the region.

This paper investigates whether this association results from a more general relation between FDI inflows and the diversity of a country’s exports.

At odds with the presumption of the literature, we find no evidence of such a relation.

However, we find that a more skilled workforce and better institutions are correlated with more diversified exports.