Location-Specific Determinants Of FDI : The Case Of The Middle East And North Africa Countries

Bachelor thesis English OPEN
Smajlovic, Lejla ; Kozlova, Marina (2008)
  • Publisher: Internationella Handelshögskolan, Högskolan i Jönköping, IHH, Nationalekonomi
  • Subject: FDI | location-specific determinants | OLI paradigm | Middle East and North Africa region | Economics | Nationalekonomi

The thesis examines the foreign direct investment (FDI) inflows in the Middle East and North Africa (MENA) region and, in order to achieve a better understanding of how MENA economies may attract FDI, attempts to identify their possible location-specific de-terminants. The analysis is based on the results of the cross-section OLS regression meth-od. The examined empirical model is based on the eclectic theory developed by John Dun-ning and the previous empirical studies. To test the relevant location-specific determinants of FDI inflows into MENA region, eighteen countries are sampled for the period 1996-2006. The results of the regression analysis show that physical infrastructure and trade openness are significant determinants of FDI in the MENA countries.
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