Business and Economics Journal

An Econometric Study of the Impact Economic Growth, Human Capital and Environmental Degradation on FDI Inflows in the African Mediterranean Countries

Abstract

Mohamed Abdouli

This paper aims to examine the role of economic growth, human capital and the environment in attracting FDI inflows using the dynamic (Sys-GMM) panel data approaches for a panel of 4 African Mediterranean countries over the period 1990– 2013. Our empirical results pointed out that higher human capital attracts FDI inflows in the African Mediterranean countries. They also indicate that weak environmental regulations increase FDI inflows. On the other hand our findings demonstrated that FDI inflows in African Mediterranean countries do no react to the economic growth.