Relationship among Economic Growth, Health, Education, Economic Development and Greenfield Investment as Mode of FDI: Evidence from MENA Countries.
Authors
ALI RAZA, SHAHID AKBAR and BIBI AISHA SADIQA
Abstract
Greenfield investment as mode of foreign direct investment is considered as the most appropriate investment in developing countries. This study used Greenfield investment as targeted variable along with remittances, aid, trade, population and inflation as controlled variables. The study checked the impact of target variable along with controlled variables on income, health, education and overall welfare of Middle East and North African sampled countries. Im, Pesaran and Shin test is used for unit root testing and one step generalized method of moment is used for full analysis. This study used panel time data from 1998-2017 and results revealed that Greenfield investment has significant and positive impact on economic growth and economic development of the sampled countries. Remittances also make small contribution in shaping economy of host country while aid can slow down economic activities. Other controlled variables have different results and have mix impact on the dependent variables.
Keywords: Greenfield-FDI, Income-index, Life-index, Education-index, GMM, Middle East and North African Countries.
