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International Journal of Economics & Management Sciences

ISSN: 2162-6359

Open Access

The Impact of the Quality of Governance on Foreign Direct Investment and Economic Growth: The Case of MENA Countries

Abstract

Hassen Soltani* and Mohamed Ghandri

Using the dynamic GMM method from a sample of 15 MENA countries during the period 2000-2017, we tried to examine the impact of governance quality on FDI and economic growth in these countries. The results show that, in general, governance variables are positively correlated with economic growth, since the quality of the institutional infrastructure is very important for the attractiveness of FDI and the promotion of a country's growth. Similarly, FDI is significant and positively related to economic growth.

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