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The effect of foreign direct investment (FDI) on economic growth: The case of AMU Cover

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The effect of foreign direct investment (FDI) on economic growth: The case of AMU

Review of Socio-Economic Perspectives

Volume 8 (2023): Issue 4 (December 2023)

By: Aicha Aouar and Asma Tahraoui

Open Access

|Dec 2023

Abstract

This study analyses the impact of foreign direct investment (FDI) on economic growth (GDP) in the Arab Maghreb Union (AMU). For this purpose, it uses Angel Granger cointegration method for the period from 1980-2021. The estimation results show that these two variables are cointegrated. We found that FDI has a significant positive impact on economic growth, which confirms that FDI is an important factor in promoting Maghreb economic growth. The causality test show that there exists a directional causality from GDP to FDI in AMU.

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Articles in this issue

DOI: https://doi.org/10.19275/rsep169 | Journal eISSN: 2547-9385 | Journal ISSN: 2149-9276

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Language: English

Page range: 59 - 67

Submitted on: Sep 3, 2023

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Accepted on: Dec 3, 2023

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Published on: Dec 7, 2023

Published by: BC Publishing

In partnership with: Paradigm Publishing Services

Publication frequency: 2 issues per year

Keywords:

foreign direct investment,

economic growth,

Angel Granger cointegration,

Related subjects:

Business and economics,

Political economics,

Microeconomics,

Macroeconomics,

Economic policy,

Business management,

Management accounting, financial controlling, cost calculation, investment

© 2023 Aicha Aouar, Asma Tahraoui, published by BC Publishing
This work is licensed under the Creative Commons Attribution 4.0 License.

Volume 8 (2023): Issue 4 (December 2023)

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