Theoretical and Applied Economics
No. 3 / 2021 (628), Autumn
FDI and ODA effects on recipient countries imports: Evidence from selected MENA countries
Al Azhar University-Gaza, Palestine
Abstract. FDI, ODA and imports are highly related in economic literature. We aim to investigate the impact of both inward FDI and ODA on imports, in seven middle income MENA countries (Algeria, Egypt, Jordan, Lebanon, Morocco, Palestine, and Tunisia), for the period 2000 to 2019, using two econometric techniques, which are simultaneous equations, 3SLS, and Dynamic Panel Data system estimators. We found that FDI replaces imports that indicates the dominant types of market-seeking or/and platform FDI in the area. ODA shows a positive (negative) impacts on both imports (savings), respectively, which clarifies that ODA crowds out local savings, and increases imports. We recommended of a series of an ambitious policies that would enhance FDI role and reallocate ODA to replace imports and boost economic growth instead to suppress it, and allow for development use of ODA.
Contents
Two vital reference elements in the evolution of the current model of European integration – The Maastricht Treaty and the implementation of the single currency – Euro
Development in Romania during the post-crisis period: A human, economic and social perspective
Multifactorial analysis of the price formation in the terms of a risk-free rate
Financial contracts with several types of agents
Evaluation of the methodological relationship between real business cycle model and macroprudential policy
Efficiency of commercial banks in India after global financial crises
Effectiveness of monetary policy and interest rate pass-through in India since financial sector reforms
FDI and ODA effects on recipient countries imports: Evidence from selected MENA countries
Estimating the relationship between governance, economic growth, inequality and poverty
Environmental Kuznets curve and India: Evidence from autoregressive distributed lag model
Rural urban migration with heterogeneous firms, heterogonous laborer and the effect of wage subsidy
The relationship between exchange rates, foreign trade and economic growth: An application on Turkey