The Impact Of Foreign Direct Investment On Arab Intra-trade Flows Using The Augmented Gravity Model

Résumé: This study aims to make contributions to the development of foreign direct investment in Arab countries and make it a tool to revive intra-Arab trade. This focuses on the relationship between foreign direct investment flows and intra-Arab trade flows. An expanded model of gravity relied on the impact of FDI on Arab intra-Arab trade flows and analysis during 1995-2017 on some Arab countries where statistics and the use of panel data were available. The results concluded that there was a negative and significant effect of the distance between the two countries on the flows of foreign trade, and a positive and significant impact of inflation, which is the opposite of what was expected, there is also a positive and significant impact of the GDP of the exporting country, a negative impact of the GDP of the importing country but not significant, a non-significant positive effect of FDI flows in exporting countries, and a negative non-significant impact of FDI flows in the importing countries.

Publié dans la revue: Revue d'économie et de statistique appliquée