THE IMPACT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH IN NORTH AFRICAN COUNTRIES: AN ECONOMETRIC STUDY USING PANEL DATA FOR THE PERIOD (2000-2019)
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Abstract
This study aims to estimate the impact of foreign direct investment (FDI) on the economic growth of a sample including four North African countries during the period (1990-2019). It utilized panel data analysis and the fully modified least squares method (FMOLS) to estimate the long-term relationship after confirming the existence of cointegration among the study variables.
The findings of the study indicate a positive and significant impact of foreign direct investment on economic growth in North African countries. An increase in foreign direct investment by 1% is expected to lead to a 0.02% increase in economic growth in the long term.
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