Institutional Reforms Debate and FDI Flows to MENA Region: Does One 'Best' Fit All?

Mina, Wasseem. 2011. “Institutional Reforms Debate and FDI Flows to MENA Region: Does One “Best” Fit All?” UNU-WIDER Working Paper No. 2011/50

Posted: 28 Oct 2017

See all articles by Wasseem Mina

Wasseem Mina

UAE University; Economic Research Forum for the Arab Countries

Date Written: September 1, 2011

Abstract

The paper revisits the policy debate on institutional reform approaches to property rights protection and empirically examines it in the context of FDI flows to the Middle East and Northern Africa region (MENA). Using panel data on 11 MENA countries for the period 1991–2007 and adopting feasible generalized least squares estimation methodology, the paper finds a positive influence of improvement in the risk of investment expropriation in non-Gulf Cooperation Council (GCC) MENA countries and of bilateral investment treaties (BITs) in GCC countries. The joint influence of domestic institutional functions and BITs is positive in specifications containing investment expropriation risk and government stability in non-GCC MENA countries, and corruption in GCC countries. Results have important policy implications for the institutional reform approach to be adopted.

Keywords: property rights protection, bilateral investment treaties, foreign direct investment, institutional reforms, MENA, heterogeneity

JEL Classification: F21, K33, O16, O17, O19

Suggested Citation

Mina, Wasseem, Institutional Reforms Debate and FDI Flows to MENA Region: Does One 'Best' Fit All? (September 1, 2011). Mina, Wasseem. 2011. “Institutional Reforms Debate and FDI Flows to MENA Region: Does One “Best” Fit All?” UNU-WIDER Working Paper No. 2011/50 , Available at SSRN: https://ssrn.com/abstract=3060355

Wasseem Mina (Contact Author)

UAE University ( email )

College of Business and Economics
P.O.Box 17555
Al Ain, Abu Dhabi 17555
United Arab Emirates

Economic Research Forum for the Arab Countries ( email )

21 Al-Sad Al-Aaly St.
(P.O. Box: 12311)
Dokki, Cairo
Egypt

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