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The effects of FDI on voice and accountability in the MENA region

The effects of FDI on voice and accountability in the MENA region Purpose – Several scholars, policymakers and international development agencies have been suggesting that trade and capital openness would bring better governance, in particular higher level of voice and accountability (VA), for the Middle East and North Africa (MENA) region. The purpose of this paper is to examine the effects of foreign direct investment (FDI) inflows on VA in the MENA region. Design/methodology/approach – Applying two different panel models (fixed‐effects and dynamic), this paper uses related observations from 19 MENA countries between 2000 and 2008 to analyze the impacts of FDI inflows on VA. Findings – The results reveal that FDI inflows do not contribute to the higher level of VA in the MENA region. Originality/value – With no previous studies of the linkage between FDI inflows and VA in the MENA region, the paper makes a significant contribution in this regard. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Social Economics Emerald Publishing

The effects of FDI on voice and accountability in the MENA region

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Publisher
Emerald Publishing
Copyright
Copyright © 2011 Emerald Group Publishing Limited. All rights reserved.
ISSN
0306-8293
DOI
10.1108/03068291111157258
Publisher site
See Article on Publisher Site

Abstract

Purpose – Several scholars, policymakers and international development agencies have been suggesting that trade and capital openness would bring better governance, in particular higher level of voice and accountability (VA), for the Middle East and North Africa (MENA) region. The purpose of this paper is to examine the effects of foreign direct investment (FDI) inflows on VA in the MENA region. Design/methodology/approach – Applying two different panel models (fixed‐effects and dynamic), this paper uses related observations from 19 MENA countries between 2000 and 2008 to analyze the impacts of FDI inflows on VA. Findings – The results reveal that FDI inflows do not contribute to the higher level of VA in the MENA region. Originality/value – With no previous studies of the linkage between FDI inflows and VA in the MENA region, the paper makes a significant contribution in this regard.

Journal

International Journal of Social EconomicsEmerald Publishing

Published: Aug 2, 2011

Keywords: Foreign direct investment; Voice; Accountability; Trade openness; The Middle East; North Africa

References