The attractiveness of foreign direct investment in north african countries

Abstract EN

The aim of this study is to identify the main determinants of foreign direct investment (FDI) inflows and the main obstacles in a region affected by economic and political instability.

The study empirically analyses the economic, political and institutional determinants of FDI entry into the North African region from 2000 to 2017.

Using the econometric technique GMM in panel data this paper shows two results: (i) the development of human, financial, commercial openness and the size of government are factors of attractiveness of FDI, this during inflation, public expenditure and the exchange rate negatively affects FDI.

(ii) The improvement in the size of government reduces the negative effect of inflation on the attractiveness of FDI.

These results call on the region's political authorities to improve the size of government, in order to attract more FDI.