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EXPLORING LINKS BETWEEN FDI INFLOWS, ENERGY CONSUMPTION, AND ECONOMIC GROWTH: FURTHER EVIDENCE FROM MENA COUNTRIES

MOHAMED ABDOULI|SAMI HAMMAMI
경제연구소 (Hanyang Economic Research Institute)|2017.03|Journal of Economic Development|제42권 제1호|pp. 95-117|DOI 10.35866/caujed.2017.42.1.005

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키워드

Economic GrowthEnergy ConsumptionFDI InflowsMENA CountriesSimultaneous Equation Models
주제분류경제학

초록

This study aims to examine the nexus between economic growth, FDI inflows and energy consumption on a panel of 17 countries using a ‘growth model’ framework and simultaneous-equation models estimated by the generalized method of moments (GMM) over the 1990-2012 period. We also implement these empirical models for 17 countries selected on the basis of data availability. They include: (a) 12 Middle Eastern countries, namely: Saudi Arabia, Qatar, Oman, Kuwait, Lebanon, United Arab Emirates, Iraq, Turkey, Iran, Syria, Jordan and Yemen, (b) 5 North African countries, namely: Egypt, Morocco, Tunisia, Algeria and Libya. Our results indicate that there is a bidirectional causal relationship between FDI inflows and economic growth, as between well as energy consumption and economic growth. Besides, there is a unidirectional causal relationship between energy consumption to FDI inflows for the global panel. This implies that the increase of energy consumption increases the FDI inflows for individual and collective countries.

Abstract

This study aims to examine the nexus between economic growth, FDI inflows and energy consumption on a panel of 17 countries using a ‘growth model’ framework and simultaneous-equation models estimated by the generalized method of moments (GMM) over the 1990-2012 period. We also implement these empirical models for 17 countries selected on the basis of data availability. They include: (a) 12 Middle Eastern countries, namely: Saudi Arabia, Qatar, Oman, Kuwait, Lebanon, United Arab Emirates, Iraq, Turkey, Iran, Syria, Jordan and Yemen, (b) 5 North African countries, namely: Egypt, Morocco, Tunisia, Algeria and Libya. Our results indicate that there is a bidirectional causal relationship between FDI inflows and economic growth, as between well as energy consumption and economic growth. Besides, there is a unidirectional causal relationship between energy consumption to FDI inflows for the global panel. This implies that the increase of energy consumption increases the FDI inflows for individual and collective countries.

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