The Role FDI on Economic Growth in the Arab Countries A Panel Data Approach

Abstract

The study estimated the effect FDI on economic growth in the Arab countries during the period 1995 to 2013. The study used panel data approach in 17 countries: (Jordan, United Arab Emirates, Bahrain, Tunisia, Algeria, Saudi Arabia, Sudan, Oman, Qatar, Kuwait, Lebanon, Egypt, Djibouti, Mauritania, Morocco, Yemen and Palestine). The study used panel data approach by E views program. The study found the effect FDI has negative effect of economic growth in the Arab countries during the period 1995 to 2013.The study found the effect FDI was negative in the Arab countries during the period 1995 to 2013, sothere is need to Manage and give direction to FDI to productive activities in order to avoid the adverse effect of FDI on GDP of Arab countries.Also the Arab countries need to increase the imports of technology for increasing labor productivity which can directly promote economic growth, and thus improve the standards of living in the Arab countries.