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The effect of foreign direct investment (FDI) on economic growth: The case of AMU

Aicha Aouar

Aicha Aouar

University Abou Bekr Belkaid, Faculty of EconomyTlemcen, Algeria
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Aouar, Aicha
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Asma Tahraoui

Asma Tahraoui

University Abou Bekr Belkaid, Faculty of EconomyTlemcen, Algeria
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Tahraoui, Asma
  
Dec 07, 2023
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Published Online: Dec 07, 2023
Page range: 59 - 67
Received: Sep 03, 2023
Accepted: Dec 03, 2023
DOI: https://doi.org/10.19275/rsep169
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© 2023 Aicha Aouar et al., published by Sciendo
This work is licensed under the Creative Commons Attribution 4.0 International License.

This study analyses the impact of foreign direct investment (FDI) on economic growth (GDP) in the Arab Maghreb Union (AMU). For this purpose, it uses Angel Granger cointegration method for the period from 1980-2021. The estimation results show that these two variables are cointegrated. We found that FDI has a significant positive impact on economic growth, which confirms that FDI is an important factor in promoting Maghreb economic growth. The causality test show that there exists a directional causality from GDP to FDI in AMU.

Language:
English
Publication timeframe:
2 times per year
Journal Subjects:
Business and Economics, Political Economics, Microeconomics, Macroecomics, Economic Policy, Business Management, Management Accounting, Financial Controlling, Cost Calculation, Investment
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