The quality of governance indicators and their impact in reducing the Fluctuations of net FDI in MENA countries for the period 1996-2017
Panel dynamic approach
Keywords:
Governance, Fluctuations of FDI, MENA, Panel Data, GMM
Abstract
In this paper, we presented concepts on the scissors effect between governance indicators
and the fluctuations of net FDI inflows and we applied them to the MENA countries. We used
PANEL data for 17 countries with triple averages over the period 1996-2017 to avoid missing some
data. We found that the proposed dynamic model by Mijiyawa (2015) is appropriate for this study
with the GMM system estimate. The results showed that the quality of the governance indicators was
mostly significant and the effect of reducing the fluctuations of the FDI inflows in the long term,
especially the indicator of the political and security situation prevailing in the region.
